Log linear maximisation problem
We are given to solve for t to maximise W,
where t>0 or t=0
Which can be log linearised to obtain
Obviously to obtain the maximimum we need to differentiate the above with respect to t and find the zero value(s) for the differential, (and then locate which is the maximum) but I am stuck on how to proceed with the differentiation.
Any help would be most appreciated.
Re: Log linear maximisation problem
You need to differentiate:
with respect to t. There are three terms. The third one is easy: .
And I'll leave it to you to simplify the result.
You might be able to differentiate the original function, too, but this seems to give a simpler answer.