Quiz 4 - Apply initial condition and terminal condition to...

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

View Full Document Right Arrow Icon
Quiz 4 Total Marks 15 Lahore School of Economics Mathematics for Economics Winter 2011 Name:_____________________ Section:_______________ Date:______________________ Score:________________ 1. Maximize [5] Subject to ( given) And at t=T=2 where the profit function is given by Write Euler equation for this problem and find its general solution. 2. Maximize [5] Subject to ( given) And a vertical terminal line at the given T where the loss function is given by . The general solution of the Euler equation is
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Apply initial condition and terminal condition to find two equations for and . 3. (a) For problem (1) write the condition at the terminal point. (b) For the functional , and the terminal condition is . Write transversality condition. (c) For the functional , and the terminal condition is and T is free. Here we have horizontal terminal line. The definite solution of problem is Find T from given information....
View Full Document

Ask a homework question - tutors are online