Jan 22, 2015 · I keep seeing the terms first-order conditions and second-order conditions used in my undergrad economics class on production functions, monopolies, etc but I have no idea …

Sep 4, 2015 · I assume the F.O.C w.r.t. $K_ {t+1}$ is such because of the inclusion of the intensive form of the production function but I am not exactly sure how and I really want to …

Apr 7, 2023 · 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 …

Feb 28, 2023 · It's not quite possible to have "FOC greater than 0", since the FOC is a condition, not a number. What is really meant here is the derivative of the utility function.

Feb 19, 2021 · FOC are \textit {necessary} for an inner optimum (can be a max or min or saddle) and SOC (often) allow to characterize the type of optimum. At the boundaries (when x go to 0 …

Nov 24, 2023 · I'm (still) reading the microeconomics textbook of Mas-Colell et al. On p. 135, the profit maximization problem (PMP) for producers is introduced; characterizing the ...

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Dec 20, 2020 · The general KKT theorem says that the Lagrangian FOC is a necessary condition for local optima where constraint qualification holds. When the objective function is concave or …

Mar 13, 2021 · I am struggling to derive a first order in this model with Cobb-Douglas production function and CES labour aggregator with two types labour (here male and female, but could be …

Dec 1, 2016 · The optimization problem is My question is how did they arrive at those FOC's? UPDATE:The second part of this optimization is to look at the problem from firm 1 perspective, …