Question: f (x) = ax 3 x 2 where x > 0 1. Find the value of x that maximizes or minimizes f(x) for a given
f (x) = ax3 x2 where x > 0
1. Find the value of x that maximizes or minimizes f(x) for a given value of a. Check SOC.
2. Let x(a) be the optimal x chosen for a given value of a, and let g(a) = f(x(a)) be the function representing f at the optimal x* = x(a) for a given value of a. Calculate g(a) and g'(a).
3. Now, use the envelope theorem to calculate g'(a), and confirm that you get the same answer as in 2).
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