R Mathematies for Feonomic Analysis, Problems on Concave-Quasiconcave Functions Determine the caneavily/convenity of f(x) = -(1/3)x" + 8x 3 Fo- “2 z zo > cercave Junction Let f(x) ~ Ax®, where 4 0 and @ are parameters, For what values of @ is f (which is twice differentiable) nondecreasing and concave on the interval (0,10)! AG s mA KR Oye weary ate dr cone oe ead FO) <0 @bih veyires A Bos KrS20 D oseay A competitive firm receives the price p > 0 for cach unit of its output, and pays the price w>0 for each unit of its single input, [ts output from using.» units of the variable input is f(x) ~ x’, Is this production function concave? Is the firm’s profit concave in x? FNC = -B FW ee op emienwe MX faopy Jewe p Fu) vx Bow o) fee comeave — fwnelions a> hence Concave Let fm, a) =a) aa +i + Be, 2a, + 1s f convex, concave, or neither? bef? “) ae def > fo conven Let ft, 25) = x! + 2x? + ex, + (12x — Bx, 2 — 8, Hind the range of values of (8.x) forwhich f is conver, ifany. uo. bros 2 2 i ave Bem Befin te ) DFO & consep6. Determine the values ofa (if any) for which the function 2x + vz + aye | 2z'is éoneave and the values for which it is convex. ay . ft 22 1 onder winey go, & [@ 2 20 2° edo Watvsy ©, 6, -26" | 2 2a. oh Ve ovder winey 4 av fovaze, Win tve Aemided 25 conver eM other Weluer cf al, neither Concave wow Convey 7. Show that the function —w" + 2 yl (in the four variables w. x,y and 2) is not concave. A 4 co Ketan order priwe! ped acura - tos ° > 2 2 2 2 e>owk Hye Row! deft oe pwr DB fewest wal Comanre 8, Suppose that a firm that uses 2 inputs has the production funetion f(r. x) 12x,"x."" and faces the input prices (p.. p.) and the output price g. Show that f is concave for x, > 0 and x, > 0, so that the firm's profit is concave. fe IB als 4 Fs aes ye HA), i an 7 gt eax lBigete ave def for x, po x re $6) © cuves 9. Use the bordered Hessian condition 10 determine whether the function f(xy) — ye is quesiconcave for the region in which x > 0 and yz 0. acsf @ -¥e “ye yet dee (4) 2 Ye?® \ ek ce o ” we peie DP quahi concave —= &10, "The function of two variables is defined by /(c, x1) =a)" If possible, determine whether this function is quasiconcave for, > Q and x,> 0. Ifnoi possible, say why not o &, ann, \ [oo } a Lae PKL PK dat () 2 & x, »,4 ve fr mre Arve = Quoai Con core