What are FOCs and SOCs? - Economics Stack Exchange
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 …
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, …
Contradictory FOC and maximizing solution - Economics Stack …
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 …
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 …
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 …
Deriving the Euler Equation - Economics Stack Exchange
Sep 4, 2015 · Now to get the Euler equation: If you take the derivative of that with respect to K_t+1 you will get your FOC there. (This is the FOC for the whole Lagrangian, because the …
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, …
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 …
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 …