Question: 2 Geometric meaning of second order condition - Example 1 Consider the following constrained maximization problem. maxf ( x , y ) s . t

2 Geometric meaning of second order condition - Example 1
Consider the following constrained maximization problem.
maxf(x,y)s.t.ax+by=c
For simplicity, assume a>0,b>0,c>0. Also assume fx>0 and fy>0.
(a) State the second order condition for this constrained maximization problem.
(b) Find the condition for ddx(fxfy)>0 subject to f(x,y)= for given inR.
(c) Compare the answer for parts (a) and (b), and provide a geometric interpretation.
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