Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! This is a question about optimalization and Lagrange. I've been doing some exercises on optimalization but there is something i can't figure out. Sometimes

Hello!

This is a question about optimalization and Lagrange.

I've been doing some exercises on optimalization but there is something i can't figure out.

Sometimes they present the utility function as:

u(x1,x2)=log(x1+1)+2log(x2+2)

And in the solution proposal the derivated are:

L/x1=1/(x1+1)

L/x2=1/(x2+2)

And other times they present it like:

U(x1,x2)=lnx1+lnx2

And in the solution proposal the derivated are:

L/x1=1/c1

L/x2=/c2

So the question is, is "ln" and "log" the same when it comes to deriving a lagrange function?

Because it looks to me like both of them are derivated like a "ln" function

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Economics Methods And Techniques

Authors: Chandra Kant Singh

1st Edition

9353147018, 9789353147013

More Books

Students also viewed these Economics questions

Question

=+b) Is this an appropriate method to display this data?

Answered: 1 week ago