Unformatted text preview: Problem 3: Given the expenditure function E = 2X+ 3Y subject to the utility function lnX +2lnY=5 i) Contruct the Lagrangian function and find the expenditure miniimizing values of X and Y ii) Find the minimum expenditure E * iii) Is the second order sufficient condition for miniimum satisfied? Problem 4: Find ∫ (X+3)(X+1) 1/2 dx Problem 5: Verify that a constant c can be equivalently expressed as a definite integral. That is, show that C ≡ ∫ b ( c/b) dx Problem 6: Assume that the rate of investment is described by the function I(t) =12t 1/3 and that K(0)=25 a. Find the time path of capital stock K. b. Find the capital accumulation during the time intervals [0, 1] and [1, 3] respectively....
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- Fall '08
- Economics, order sufficient condition