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 …

Feb 28, 2023 · It's not quite possible to have "FOC greater than 0", since the FOC is a condition, not a number. What is really meant here is the derivative of the utility function.

Feb 19, 2021 · FOC are \textit {necessary} for an inner optimum (can be a max or min or saddle) and SOC (often) allow to characterize the type of optimum. At the boundaries (when x go to 0 or 1) there …

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 ...

Mar 24, 2015 · New-Keynesian Model: Log-linearizing the firm's FOC Ask Question Asked 10 years, 11 months ago Modified 10 years, 11 months ago

Apr 7, 2023 · My question is under which contexts Negative Definitness (ND) vs Negative Semi-Definitness (ND) is required for classifying a global maximiser. And also Global vs Local. I also want …

Mar 13, 2021 · I am struggling to derive a first order in this model with Cobb-Douglas production function and CES labour aggregator with two types labour (here male and female, but could be equally low …

May 18, 2022 · It seems that an equilibrium where MC<MR is preferred to one where MC=MR since in the case of the latter the firm still makes a profit. Put differently, why would a firm produce a unit at all …

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 …

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 …