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 what these …

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 · 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 derivative of U (C) …

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 ...

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 …

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, and the …

Mar 19, 2022 · simplification of FOC Ask Question Asked 3 years, 7 months ago Modified 3 years, 7 months ago

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, it …

Apr 14, 2023 · I'm unsure where the envelope theorem comes into play when i differentiate the Bellman Equation with respect to $k_t$. To me it looks like the regular chain rule and ...

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 quasi …