5. Let U be a convex subset of R. Let f : U + R be...

 

Transcribed Image Text:

5. Let U be a convex subset of R". Let f : U + R be a concave function. Let g : U + R be convex functions for i € {1,2,...,k}. For any beR*, consider the following maximization problem: max f(r) s.t. g:(2) s bi, i e {1,2,...,k} Define v(b) as the maximal value of the objective function. In other words, if r" (b) is the solution to the above optimization problem then v(b) = f(a" (b)). Prove that e(b) is a concave function in b. 5. Let U be a convex subset of R". Let f : U + R be a concave function. Let g : U + R be convex functions for i € {1,2,...,k}. For any beR*, consider the following maximization problem: max f(r) s.t. g:(2) s bi, i e {1,2,...,k} Define v(b) as the maximal value of the objective function. In other words, if r" (b) is the solution to the above optimization problem then v(b) = f(a" (b)). Prove that e(b) is a concave function in b.

Answer rating: 100% (QA)

solution Given iruations ca FCX X... View the full answer