- #1
Alesak
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My teacher is telling me that the below function is quasiconcave, but I think it is not.
Show that u(c, l) = 20 000 c + c2+ l is or is not quasiconcave, in the first quadrant. c>=0 and l>=0.
From wikipedia:
I've rewriten it, for some level curve, as l = M + 10000 + (c+100)2, so it looks like a circle. Since the function u is increasing in both arguments, the upper level set looks like the outside of the circle, which is not convex, therefore the function is not quasiconcave. Correct? We are talking here only about the first quadrant.
Homework Statement
Show that u(c, l) = 20 000 c + c2+ l is or is not quasiconcave, in the first quadrant. c>=0 and l>=0.
Homework Equations
From wikipedia:
quasiconcave function has convex upper contour sets.
The Attempt at a Solution
I've rewriten it, for some level curve, as l = M + 10000 + (c+100)2, so it looks like a circle. Since the function u is increasing in both arguments, the upper level set looks like the outside of the circle, which is not convex, therefore the function is not quasiconcave. Correct? We are talking here only about the first quadrant.