ECN611 Final S07

25 y 400 uz z and e e e4 how important are these

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: being laid off was .25, Y = 400, U(z) = (z)½, and ð(E) = e –E/4. How important are these particular functional forms? Re-do the analysis for U(z) = ln (1 + z). In particular, get the analog of the diagram at the bottom of page 611.08-5. 3. (Optimization) A. Min C = rK + wL subject to K ￿ 0, L ￿ 0, (K + 1)(L + 1) = Q for r,w > 0 and Q > 1. B. f: ￿+ ￿ ￿ is continuous with f(a) ￿ 0 for some a in ￿+ and limx￿￿ f(x) = 0. Show there exists a global maximum for f on ￿+ . Extra Credit. Think hard about the existence of a global minimum for the following function of b1, ..., bK....
View Full Document

This note was uploaded on 01/13/2012 for the course ECN 611 taught by Professor Kelly,j during the Fall '08 term at Syracuse.

Ask a homework question - tutors are online