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  • Solving Constrained Choice Problems via Substitution

  • First-Order Condition

  • Applying Substitution to Simplify Angela's Constrained Choice Problem

Finding an Optimum for a Single-Variable Function using First and Second-Order Conditions

Once an objective function has been reduced to a single variable, typically through the substitution method, calculus can be used to find an optimal point. The first step is to find a stationary point by applying the first-order condition: differentiating the function and setting the result to zero. To verify if this point is a maximum, the second-order condition must be checked. The substitution method makes this straightforward, as the second-order condition simply involves finding the second derivative of the single-variable objective function.

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The Economy 2.0 Microeconomics @ CORE Econ

Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ

Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ

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