ECN611 Final S07

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

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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....
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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.

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