Mathematical Optimization and Economic Behavior
Dynamic optimization adds a time dimension to the study of economic behavior. While maximization of profit and utility has been the microeconomic foundation for studying supply and demand, and a general equilibrium condition is the basis for an economic system, such idealized conditions do not exist in a changing world. There is a gap between the concepts short run and long run, namely, how does one shift from one position to the other?
KeywordsInterest Rate Energy Resource Application Program Economic Behavior General Good
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