sbokka
08-21-2008, 02:58 PM
Attachement has the clear explanation
Question is
What can you conclude about the price in this problem if the probability function has (-),(+), (0) second derivatives?
Are there any other things that you could conclude about the price?
What if the quantity q was decreasing in p?
Question is
What can you conclude about the price in this problem if the probability function has (-),(+), (0) second derivatives?
Are there any other things that you could conclude about the price?
What if the quantity q was decreasing in p?