# Tagged Questions

33 views

64 views

### Help to solve this problem, the result doesn't seem right :/ silly mistake somewhere probably

Suppose that Coke and Pepsi are the only firms producing cola. Their products are not identical, but are very close substitutes. Let $P_c$ denote the price of Coke and $P_p$ the price of Pepsi. Demand ...
57 views

### Why is that a risk averse consumer buys the optimum insurance when there is actuarially fair insurance?

I've asked the same question at the Quantitative Finance StackExchange. Consider the following example: "As a risk-averse consumer, you would want to choose a value of x so as to maximize expected ...
153 views

### Substituting total derivative d for partial derivative \partial

In economic models it seems to be commonplace to substitute a total derivative derived from one equation, say $\frac{d k}{d \tau}$, for the partial derivative derived from another equation, say ...
82 views

### Using derivative to estimate change overestimates change between two states

I have a profit function in which revenue is given by the state of a variable y at each point in time t: R=y[t]-y[t]^2 and costs depend on the change in y from the previous state so that large changes ...
### derivative with respect to $\log(x)$
I have a dynamic equation, $$\frac{\dot{k}}{k} = s k^{\alpha - 1} + \delta + n$$ Where $\dot{k}/k$ is the capital growth rate as a function of savings $s$, capital $k$, capital depreciation rate ...