Event Detail

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

Speaker Info

OSU Economics

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.