A decision maker wishes to maximize total benefit, B = 3x + xy + y, subject to the cost constraint, C = 4x + 2y = 70. Set up the Lagrangian and then determine the values of x and y at the maximum level of benefit, given the constraint. What are the maximum benefits?
Answer to relevant QuestionsIn Figure, the total benefit and total cost curves are represented by the following mathematical functions: TB = TB (A) = 8A – 0.004 A2and TC = TC (A) = A + 0.006 A2a. Find the marginal benefit function. Verify that points ...The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day (S). After ...Assume a consumer with the utility function U = U (X, Y) = X2 Y2and the typical budget constraint M = PxX + PyYa. Set up the constrained maximization problem and derive the first-order conditions. b. Derive the consumer’s ...Consider the linear demand function Q = 20 – 0.5P. a. Write the inverse demand function. b. Write the total revenue function. c. Using calculus, find the level of output, Qrmax, where total revenue reaches its maximum ...Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of the United States. The most common load for the specialty trucker is the Caterpillar model 740 dump ...
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