# Tagged Questions

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### Cost per item. Diminishing marginal discount, if you will. (Bigger discount for first few items) Optimal number of units to buy?

The graph above shows price per unit. Say they are cupcakes. When you buy a higher quantity, you get a lower price per unit. Say it levels off like this graph. Obviously, buying 2 nets a nice ...
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### Maximizing a derivative of a two-variable function in an economic application [closed]

What is the solution to this problem: Thank You
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### Minimizing the cost of production by choosing between two options with different resource demands

Suppose that the ﬁrm has two possible activities to produce output. Activity $A$ uses $a_1$ units of good $1$ and $a_2$ units of good $2$ to produce $1$ unit of output. Activity $B$ uses $b_1$ units ...
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### Application of a general “Weierstrass theorem”

http://books.google.at/books?id=9OSrV73a40gC&pg=PA45&lpg=PA45 gives a general Weierstrass theorem. Are there notable applications of this theorem, say in the calculus of variations? (I could ...
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### Optimize profit given complete market information

Assume there are $N$ market participants (on the order of several hundred), and $M$ items (several thousand) being bought and sold on a market. For each participant/item pair, you know how many units ...
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### 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 ...
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### Optimization: Finding line connecting non-pareto-optimal allocation in Edgeworth Box to PO allocation

Two people, A and B, with respective utility functions of: $$U_a(X_a,Y_a) = X_a^2 Y_a\\ U_b(X_b,Y_b) = X_b Y_b^2$$ Total $X$ (that is, $X_a+X_b$) is fixed at $36$. Total $Y$ ($Y_a+Y_b$) is fixed ...
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### Multivariable optimization books

I have some economic data in hand, and I would like to make forecasting out of it (e.g., consumer demand, price elasticity and so on). As far as I understand, these characteristics can be (to some ...
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### Profit Maximization Question of a Leontief (Perfect Complements) Production Function?

This is a question from my intermediate micro economics text book. Any help is very appreciated! Given Info: Company ST (a company which offers custom travel-planning services) is a ...
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### Production function (economy)

A company produces one good using two factors of production factors. If $x$ and $y$ denotes the units of the factors used by the company, the technology function is given by $F(x; y) = xy^2$. In the ...
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### Optimizing revenue clicks CPC

I am quite new to optimization procedure and would like to get some hints here: I am work for a small business that offers a service of niche selling items where subribers pay for every item they ...
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### $\frac{\partial}{\partial\theta}\phi'\mu+\frac{\alpha\phi'\Sigma\phi}{2}=0$

Ok, I am working on a problem that consists of the following: I am looking to solve the portfolio choice optimization problem (maximizing utility with a known utility function) in the case where all ...
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### How to build (and maximize) this equation

I'm trying to solve an economics problem but I cannot figure out how to build the equation system, or how to find the maximum in a piecewise function. A simplified version of the function would be ...
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### Minimizing total cost function

In today's test (question c) I had to minimize equation $(3)$ and solve for N*. I did it through deriving, setting to $0$ and solve for N (no doubts about that). My question is, in this image it ...
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### Economic Analysis / Minimization Problem

I am studying and going through some old exams for a microeconomic analysis class. I am just looking for some clarification regarding one of the answers given. The question is as follows Suppose ...
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### Economic optimisation problem

Here is the question: Consider a car-owning consumer with utility function $$u (x) = x_1x_2 + x_3 (x_4)^2 ,$$ where $x_1$ denotes food consumed, $x_2$ denotes alcohol consumed, $x_3$ denotes kms of ...
Suppose you have two countries A and B, with a tax rate $T_A$ and $T_B$, respectively. The tax is redistributed to all people equally. Hence if you live in A and you make $I$ as income then you will ...