A Company has a determined that its production function is the Cobb-Douglas function f(x,y) = x2/3 y 1/3 where x is the number of labor hours and y is the number of capitol units. The budget constraint for the company is given by 100x +100y = 400000. Use the method of Lagrange multiplier to find the optimal solutions.
A Company has a determined that its production function is the Cobb-Douglas function f(x,y) = x2/3 y 1/3 where x is the number of labor hours and y is the number of capitol units. The budget constraint for the company is given by 100x +100y = 400000. Use the method of Lagrange multiplier to find the optimal solutions.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A Company has a determined that its production function is the Cobb-Douglas function f(x,y) = x2/3 y 1/3 where x is the number of labor hours and y is the number of capitol units. The budget constraint for the company is given by 100x +100y = 400000. Use the method of Lagrange multiplier to find the optimal solutions.
Transcribed Image Text:A Company has a determined that its production function is the Cobb-Douglas
function f(x,y) = x2/3 y¹/3 where x is the number of labor hours and y is the number of
capitol units. The budget constraint for the company is given by 100x +100y=
400000. Use the method of Lagrange multiplier to find the optimal solutions.
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