ECON 300 Problem Set 1 Solution function The domain of 1 The function is defined on What is the value of Is this a well defined is the interval Since 5 is not in the domain is not defined Nevertheless the function is not affected since it only needs to be defined on its domain 2 Consider the following function is it convex concave or both is convex since for all 3 Draw indifference curves of the following function Graph with k 1 and k 5 0 0 05 0 1 0 15 0 2 0 25 0 3 0 35 0 4 5 1 100 90 80 70 60 50 40 30 20 10 0 f 4 10 5 f f 4 10 5 f 2 fxx f2221212 1 1 xxxx 12 xx32 uxyxy 123 kyx ECON 300 Problem Set 1 Solution 4 Consider the following function and provide an argument about its concavity or convexity and monotonicity The function is monotone increasing since for any The function is NOT convex or concave in its full domain 4 3 2 1 The red line is not above the function between a and b Hence it is not Convex The red line is not below the function between a and b Hence it is not Concave a b 0 1 2 3 4 00101 21232343xxfxxxx 12 fxfx 21xx
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