Question: Concave 2. The Lagrangean for the problem max,>, 7 log(2 +3) subject to the constraint r 0. L(x, A) = 7 log(x + 3) +

 Concave 2. The Lagrangean for the problem max,>, 7 log(2 +3)

Concave 2. The Lagrangean for the problem max,>, 7 log(2 +3) subject to the constraint r 0. L(x, A) = 7 log(x + 3) + A(b - I). Let V(b) = max,20 7log(r + 3) s.t. x 0, let r*()) be the solution to the problem max,30 7log(r+ 3) + X(7 - r). It is important to note here that r is NOT bounded above in this problem.]. e. Find the A*(b) such that r* (1*(b)) = b. f. Check that V'(b) = >*(b) and explain why this comes out of the FOCs for the Lagrangean

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