Hello All,
I'm trying to solve this simple CES production function profit maximization problem. These is the lagrangian and I need to find "Y", "Xy" and "ny", the other letters are just parameters.
L = Py Y - Px Xy -
Pn ny + \[Lambda] (Log[A] + v \[Beta] Log[Xy] +
v (1 - \[Beta]) Log[ny] -
0.5 \[Rho] v \[Beta] (1 - \[Beta]) Log[Xy] Log[Xy] -
0.5 \[Rho] v \[Beta] (1 - \[Beta]) Log[ny] Log[
ny] + \[Rho] v \[Beta] (1 - \[Beta]) Log[Xy] Log[ny] - Y);
vars = {Y, Xy, ny, \[Lambda]};
Grid[Solve[Thread[D[L, #] & /@ vars == 0], vars], Alignment -> Left]
I attach the file so you can see that I got this no solution answer from the Mathematica software.
Solve::inex: "Solve was unable to solve the system with inexact coefficients
or the system obtained by direct rationalization of inexact numbers present in
the system. Since many of the methods used by Solve require exact input,
providing Solve with an exact version of the system may help"
Attachments: