Question

What is Hessian matrix? Explain what is the significance of Hessian matrix.Under perfect competition a firm produce 2 commodities A & B and their prices are 5 and 3 respectively..Accordingly the firm's revenue function R = 5q1+ 3q2 where q1 andq2 represents the quantity of output of 2 products respectively.The firm's cost production is C = 2q1+2q2+q1q2.
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Answer 1

Answer:

In mathematics, the Hessian matrix or Hessian is a square matrix of second-order partial derivatives of a scalar-valued function, or scalar field. It describes the local curvature of a function of many variables. The Hessian matrix was developed in the 19th century by the German mathematician Ludwig Otto Hesse and later named after him. Hesse originally used the term "functional determinants".