Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HI, i just need the answers for e,f,g thanks! 4. A professor chooses how much time to spend on three activities: re- search, teaching, and

HI, i just need the answers for e,f,g thanks!

image text in transcribed
4. A professor chooses how much time to spend on three activities: re- search, teaching, and administrative duties. The amount of time spent conducting research is written x, the amount of time spent teaching y. and the amount of time spent attending to administrative duties 2. The professor has a total amount of time t > 1, and has preferences over these three activities represented by a utility function u : IR: -> IR, with u(x,y,z)= lnx+ lny+ alnz, where a > 0 is a xed parameter. The time spent conducting research must be at least 1 or else the professor will be red: y and 2 cannot be negative. (a) Write down the professor's constrained optimization problem. [4] (b) Prove that the professor's objective function is concave and that [8] the professor's constraint set is convex. (c) Why will a non-degenerate constraint qualication (NDCQ) hold? [2] (d) Write down the Lagrangian L for this problem. Compute the first- [4] order conditions. Write down the associated complementary slack- ness. feasibility, and non-negative multiplier conditions. (e) Briey explain why the solution to the equations in your answer to [2] part (d) will generate the solution to the problem in part (a). (f) Find the optimal amount of time spent on each activity (x*,y*, 2*) [8] when t > a + 2. What happens when t S a + 2? (g) Derive the marginal utility of time as a function of t and plot it in a [3] graph. Is this function continuous at t = a + 2? Is it differentiable

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

Local Disaster Resilience Administrative And Political Perspectives

Authors: Ellen Russell, Ashley D Ross

1st Edition

1135910618, 9781135910617

More Books

Students also viewed these Economics questions

Question

Engage everyone in the dialogue

Answered: 1 week ago