Convex Function

A function f(·) is strictly concave if, for any positive weights w1 and w2 such that w1 + w2 = 1, then

w1·f(a1) + w2·f(a2) > f( w1·a1 + w2·a2 ).

Two common examples are the exponential function y = exp(x) and the square
function y = x^{2}.

See also concave function.

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Arbitrage Pricing

Arbitrage Profit

Average Cost

Balance of Payments

Budget Constraint

Call Option

Concave Function

Consumer Surplus

Consumption Function

Convex Function

Deadweight Loss

Demand Curve

Econometrics

Economic Agent

Economic Model

Economics

Economics Textbook

Elasticity

Endogenous

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Frictional Unemployment

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Jensen's Inequality

Macroeconomics

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Structural Unemployment

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Taylor Rule

Technological Growth

Term Structure

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Unemployment Rate

Utility Function

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