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Chain rule question (economics) Watch

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    Hey all,

    Sorry for the maths-economics related question, but I can't work out the maths for this question, and it is stressing me out as I have a problem set due in two days.

    I have the following function below:

    U(C,L)= U(wL+(1+r)A,L)

    I need to take the chain rule of this function where the only choice variable is L. The final line of the answer is (all d's are partial):
    d/c*U(c,l)*d/l*c= d/c*U(c,L)w

    I think the r.h.s is just partial differentiate w.r.t L, so I don't think it is part of the chain rule problem.

    Any help greatly appreciated.

    Andrew
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    (Original post by Andrew41289)
    I have the following function below:

    U(C,L)= U(wL+(1+r)A,L)

    I need to take the chain rule of this function where the only choice variable is L.
    What is a choice variable?

    The final line of the answer is (all d's are partial):
    d/c*U(c,l)*d/l*c= d/c*U(c,L)w
    This is incomprehensible, to me at least. I suspect you'd have better luck posting in an economics forum where the notation may be more familiar.
 
 
 
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