Answer to Question #234103 in Microeconomics for Chibwe Evans

Question

For each of the following functions, use the Lagrange multiplier to find the critical values that will optimize functions subject to the given constraints and estimate by how much the objective functions will change as a result of 1 unit change in the constant of the constraint  

i) Maximize Z = 2x2 - xy + 3y2 subject to x + y = 72 [5 Marks]

ii) Maximize f(x,y) = 26x – 3x2 + 5xy – 6y2 + 12y subject to 3x + y = 170  [5 Marks]

iii) Maximize f(x,y,z) = 16x2yz subject to x + y + z = 224   [5 Marks] 

Answer 1

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