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ECO- 5.2 Optimization and Hessians

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Question;(Problem is easier to understand in the attachment)5.2 Optimization and Hessians (10 Points)Consider the production functionQ = 4K ^ (3/4) * L ^ (1/4)a. Find the gradient of Qb. Find the Hessian of Qc. Denote the initial K = 10,000 and L = 625. Consider an increase of K by?K and similarly an increase of L by?L. Find the Taylor approximation for this function. f(x +?x) = f(x) +?x^(T) *?f(x) + (1/2)?x^(T) * H(x)?x + o(k?x k2)(problem is easier to understand in the attachment)

 

Paper#56980 | Written in 18-Jul-2015

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