Event Detail

Event Type: 
Applied Mathematics and Computation Seminar
Date/Time: 
Friday, November 14, 2014 - 12:00 to 13:00
Location: 
GLK 115

Speaker Info

Institution: 
OSU Economics
Abstract: 

The Law of Diminishing Returns models the situation that an unlimited
amount of corn cannot be grown on the plot of land at the University of
Illinois, i.e, a function F: (R_+)2 -> R_+meets the condition
Sup{ F(x1, x2)| x1 \ge 0} is finite.
This generalizes the Weierstrass Theorem: if F is continuous and K compact, then
F is bounded on K. (The theorem is a bit stronger than this.)
Conditions on F are introduced for the Law to hold. I also show how
such a law can be put into practical use. In addition I study the
condition when restricting one of two outputs may bound the production
of the unrestricted one. Such theorems are applicable for the
understanding of environmental regulations.