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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.
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.
- Fall '08