# Tagged Questions

For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.

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### Economics maximization problem linear activity

Consider the vectors: $a_1 = \begin{pmatrix} 0 \\ -1 \\ 1 \\0 \end{pmatrix}, a_2 = \begin{pmatrix} 0 \\ 0 \\ -1 \\1 \end{pmatrix}, a_3 = \begin{pmatrix} 2 \\ 0 \\ 0 \\ 1\end{pmatrix}$ Find a single ...
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### Could math have predicted with certainty the banking crisis? (Why did it happen?) [closed]

The economics I do understand seem like trivial mathematics. Complex proofs are required for engineering involving safety - algorithm running times for pacemakers, strengths of physical structures ...
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### Find the maximum of $U (x,y) = x^\alpha y^\beta$ subject to $I = px + qy$

Let be $U (x,y) = x^\alpha y^\beta$. Find the maximum of the function $U(x,y)$ subject to the equality constraint $I = px + qy$. I have tried to use the Lagrangian function to find the solution for ...
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### Economics : Game-theory (Nash equilibrium)

This is a homework question, but resources online are exceedingly complicated, so I was hoping there was a fast, efficient way to solving following question. Question: Six students are going on a ...
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### Applied Rational Choice Theory

I am a programmer researching the application of Rational Choice Theory. I have found many links to the philosophical nature of it. And fewer documents formalizing it's mathematical principles. ( ...
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### Applying Slutsky's Equation

Note: I asked in the Mathematics Meta regarding if it is permitted to ask Mathematics questions of economic nature. I also posted this question in the Economics Stackexchange but have not got any ...
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### (Proof) Representing preorder $\succsim$ as a real-valued function.

I am reading a proof and having a hard time understanding on some parts. In math language, the proof is trying to show the existence of continuous preorder $\succsim$ (i.e. preserved under limits, ...
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### $\succsim$ preorder on X being continuous imply lower contour set closed

$\succsim$ is preorder (i.e. preference relation) on X that is continuous. This implies the lower contour set is closed. Would you please share your 2 cent on my parenthesis explanation (e.g. line ...
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### Marginal revenue of a monopolist [closed]

A monopolist faces a demand function $Q=4000(p+7)^{-2}$. If she charges a price of p, her marginal revenue will be: (a) $p/2+ 7$ (b) $2p+ 3.50$ (c) $p/2-7/2$ (d) $-2(p+7)^{-3}$ Correct answer is ...
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### Production functions total cost

Production function is: $f(L,M)=L^{1/2}M^{1/2}$. L is the number of units of labour, M of machines used. Cost of labour is 9 per unit, whereas the cost of machine is 81 per unit. Total cost of ...
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### Which derivative is correct?

Consider the following expressions: $$C_{i}=\sum_{j=1}^{N_i}v_{j}, \quad v_j \in \mathbb{R}, \quad N_i \in \mathbb{N}$$ $$x_{i}=\frac{C_{i}}{N_i}$$ I want to obtain an ...
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### Complementarity and Substitutability

I am reading a paper in the international journal of game theory entitled Unequal Connections by Goyal and Joshi (2006) and it has the following sentences: "If strategic complementarity obtains... In ...
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### Discrete Uniform Probability: isn't my textbook just wrong?

My textbook is showing me examples of discrete probability distributions, one of them is in the picture: I learned in Calculus that the summation of the series $1/n$ where $n\to \infty$ is ...