What are FOCs and SOCs? - Economics Stack Exchange
Jan 22, 2015 · For example when you are talking about profit maximization starting from a profit function $\pi (q)$, the main condition for a maximum is that: $$\frac {\partial \pi} {\partial q}=0$$ This is the …
FOC greater than 0 - Economics Stack Exchange
Feb 28, 2023 · A hint suggested to find take the FOC, and then set $x = 0$ and I would see that FOC is greater than 0, meaning that $x = 0$ cannot possibly be a utility maximizing choice, and the …
Contradictory FOC and maximizing solution - Economics Stack Exchange
Feb 19, 2021 · FOC are given as - x 1−x x 1 x = (p2/p1)2r/2r−1 (p 2 / p 1) 2 r / 2 r 1 My problem is - Whenever p1 p 1 > p2 p 2, FOC argues that value of x should be < 1/2 but this doesn't maximize the …
FOCs for profit maximization using a transformation function
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 ...
Second Order Condition - Always means second derivative?
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 second order …
setting of Lagrangian function - Economics Stack Exchange
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 quasi …
Jordi Gali Euler Equation Beta - Economics Stack Exchange
Jan 22, 2017 · Jordi Gali book, page 42 There is no explanation gali book the notes which are prepared by Drago Bergholt (Page 6) explain FOC for "Ct" (2.13) and (2.18) explain Euler equation Writer uses …
Deriving the Euler Equation - Economics Stack Exchange
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 understand this …
Externalities - First order conditions - Economics Stack Exchange
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, it …
A question about Lagrange multiplier(when $\\lambda=0$)
The solution to this problem gives the following first order condition (FOC) i.e. taking derivative w.r.t. Φ Φ (assuming integration and differentiation can be exchanged): But there's actually a constraint: ϕf …