First order condition

 

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First order condition

One of the mathematical necessary conditions for maximization, used routinely in solving economic models. Typically, it consists of setting equal to zero the derivative of the function being maximized (or its Lagrangian) with respect to a variable that can be controlled.



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Marshall-Lerner condition

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Statement of condition

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A document describing the status of assets, liabilities, and equity of a person or business at a particular time.


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