Event Type:

Applied Mathematics and Computation Seminar

Date/Time:

Friday, November 14, 2014 - 12:00 to 13:00

Location:

GLK 115

Event Link:

Guest Speaker:

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.