Consider the Cobb-Douglas function f (x1,x2,..,Xn) = x"x i=1 where x; > 0, and a; > 0 for all i=1,2,...,n. Find the condition on a1,ɑ2, ..., An such that ƒ is:
Consider the Cobb-Douglas function f (x1,x2,..,Xn) = x"x i=1 where x; > 0, and a; > 0 for all i=1,2,...,n. Find the condition on a1,ɑ2, ..., An such that ƒ is:
Chapter3: Functions
Section3.3: Rates Of Change And Behavior Of Graphs
Problem 2SE: If a functionfis increasing on (a,b) and decreasing on (b,c) , then what can be said about the local...
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Transcribed Image Text:Consider the Cobb-Douglas function
f (x1,x2,.,Xn) = x
i=1
where x; > 0, and a; > 0 for all i =
1,2,...,n.
Find the condition on ɑ, ɑ2, ..., Cn such that f is:
(c) Suppose that n= 2 so that f (x1,x2) = x“1x?. Is ƒ strictly concave when a1 + a2 = 1?
Is f strictly concave when a1+02 < 1?
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