But n can be changed fixed special case bxn10x 2x2 2n

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Unformatted text preview: case B(X,N)=10X-2X2-.2N-.05N2 Special and c(X)=X+X2 and Max N(10X-2X2-.2N-.05N2)-X-X2 Given N the FOC with respect to X is Given 10N-4NX-1-2X=0 For N=1 the optimal condition is 9=6X X=1.5 For X=1.5 Benefits in this case15-2*2.25-.2-05-1.5-2.25 =15-4.5-.25-3.75=15-8.5=6.5 Special case B(X,N)=10X-2X2-.2N-.05N2 Special and c(X)=X+X2 and Max N(10X-2X2-.2N-.05N2)-X-X2 Given N the FOC with respect to X is Given 10N-4NX-1-2X=0 For N=2 the optimal condition is For 20-8X=1-2X 19-10X X=1.9 20-8X=1-2X X=1.9 Benefits in this case 2(19-2*3.61-.2 -05) -1.9 Be...
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This note was uploaded on 05/11/2012 for the course ECON 125 taught by Professor Zilberman during the Spring '11 term at University of California, Berkeley.

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