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Mathematical Economics Doubt

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Mathematical Economics Doubt

Homer Simpson
551 posts
Obtain a linear approximation to the production function x = 3K^(2/3)L^(1/3) near K=1000 and L=125. Using this approximation, estimate the output if K = 998 and L=126

what does this linear approximation mean exactly? partial derivatives??
“Operator! Give me the number for 911!”
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Re: Mathematical Economics Doubt

Granpa Simpson
426 posts
Expand the function using Taylor's approximation...!!!!
 "I don't ride side-saddle. I'm as straight as a submarine"
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Re: Mathematical Economics Doubt

Homer Simpson
551 posts
thank you..am not sure how to do it though cuz its two-variable case (have only done 1 variable version of taylor series) and they have mentioned near both K = 998 and L=126.
“Operator! Give me the number for 911!”
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Re: Mathematical Economics Doubt

Granpa Simpson
426 posts
 "I don't ride side-saddle. I'm as straight as a submarine"
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Re: Mathematical Economics Doubt

Homer Simpson
551 posts
:) thank you
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Re: Mathematical Economics Doubt

Anjali
837 posts
1500+ 0.5 (K-1000) + 4 (L-125)
Is that so ?
"Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth."
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Re: Mathematical Economics Doubt

Anjali
837 posts
N output 1503 ?
"Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth."