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- FOC greater than 0 - Economics Stack Exchange
A hint suggested to find take the FOC, and then set x = 0 x = 0 and I would see that FOC is greater than 0, meaning that x = 0 x = 0 cannot possibly be a utility maximizing choice, and the consumer must hold a positive amount of assets What does FOC being greater than 0 have anything to do with x = 0 x = 0 not being the a utility maximizing
- FOC for King–Plosser–Rebelo preferences - Economics Stack Exchange
FOC for King–Plosser–Rebelo preferences Ask Question Asked 8 years, 10 months ago Modified 8 years, 10 months ago
- Second Order Condition - Always means second derivative?
In optimisation, does First Order Condition (FOC) always mean a condition for a max min related to the first derivative Similarly, is Second Order Condition (SOC), called second order because it relates to the second derivative?
- FOCs for profit maximization using a transformation function
Usually when you do constrained optimization under inequality constraints, you get inequalities for the FOCs as well (e g (5 C 2) on p 137, where the authors study the important special case of a single output good) Why not here? Why can we say that the above FOC must always hold with equality (when F F is differentiable)?
- Two-Stage Utility Maximization Problem - Economics Stack Exchange
Actually I don't know how to solve such utility maximization problem, only know using FOC and budget constraint to solve for demand I will appreciate it if someone tell me the procedure facing such
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