This exercise shows that the multiplier may be interpreted as a rate of change in general.
Question:
This exercise shows that the multiplier λ may be interpreted as a rate of change in general. Assume that the maximum of ƒ(x, y) subject to g(x, y) = c occurs at a point P. Then P depends on the value of c, so we may write P = (x(c), y(c)) and we have g(x(c), y(c)) = c.
Transcribed Image Text:
(a) Show that Vg(x(c), y(c)) (x'(c), y'(c)) = 1 Differentiate the equation g(x(c), y(c)) = c with respect to c using the Chain Rule. (b) Use the Chain Rule and the Lagrange condition Vfp = AVgp to show that d de f(x(c), y(c)) = A dc (c) Conclude that is the rate of increase in f per unit increase in the "budget level" c.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
a We differentiate the equation g xc yc c with respect to c usin...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Mathematics questions
-
Read the case study: COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division 2019/CLE/gen/01037 BETWEEN NIQUEL PINDER 1 st Plaintiff SHARMAINE BARR 2 nd Plaintiff TIFFANY REID...
-
This exercise shows that the OLS estimator of a subset of the regression coefficients is consistent under the conditional mean independence assumption stated in Appendix 7.2. Consider the multiple...
-
Give several examples of how the derivative can be interpreted as a rate of change in physics, chemistry, biology, economics, or other sciences.
-
Maynard Appliances is holding a Fifty- Fifty Sale. Major appliances may be purchased for nothing down and no interest to pay if the customer pays 50% of the purchase price in six months and the...
-
Walt Frazier is settling a $20,000 loan due today by making 6 equal annual payments of $4,864.51. Determine the interest rate on this loan, if the payments begin one year after the loan is signed.
-
Describe the three main components of effective teams.
-
T. Christian Cooper was a partner to Sanders and Richard Campbell d/b/a The Mullen Company. In 2001, Cooper helped bring about a management agreement between The Mullen Co. and Newnan Crossing...
-
Blinko Products wants an airplane for use by its corporate staff. The airplane that the company wishes to acquire, a Zephyr II, can be either purchased or leased from the manufacturer. The company...
-
A string has a mass of 6.80 g, is 84.0 cm long, and has a tension of 46.0 N. If you wish to generate a wave of frequency 440.0 Hz and amplitude 0.550 mm, how much power must you supply to the string?...
-
Let B > 0. Show that the maximum of subject to the constraints x + this to conclude that f(x,...,xn) = X1 X2 Xn for all positive numbers a,..., an. . + xn = B and xj 0 for j = 1,. n occurs for x =...
-
Consider the utility function U(x 1 , x 2 ) = x 1 x 2 with budget constraint p 1 x 1 + p 2 x 2 = c. (a) Show that the maximum of U(x 1 , x 2 ) subject to the budget constraint is equal to c 2 /(4p 1...
-
Jackrabbit Trails is a family camp located in Kings Canyon National Park, California. Open from mid-May to Labor Day, Jackrabbit Trails offers week-long family summer vacation packages that include...
-
A mass-spring system as shown in Figure Q4 is driven by the external force F(t)=t-t for 0
-
A centrifuge slows down from 668 rpm to 319 rpm in 14 seconds. Assuming constant angular acceleration, determine the number of revolutions it goes through in this time. Express your answer using zero...
-
In a collection of microscopic oscillators, the temperature is high enough that the ground state and the first two excited states are occupied. a) (4 points) Which stands to all the possible energies...
-
5. A uniform string of length 1, constant density p and tension To has its equilibrium position along the x-axis, with end at x = 0 fixed and the end at x = l free to move (in a plane) perpendicular...
-
In an RC circuit, the energy stored in the capacitor decreases with time as the capacitor discharges. After how many time constants is this stored energy 31% of its initial value? A. 0.19 T B. 0.74 T...
-
Deutsche Bank has offered the following exchange rate quotes: Rs72.64/ and $1.5734/. What is the cross rate between the Indian rupees and the U.S. dollar?
-
Write an SQL statement to display all data on products having a QuantityOnHand greater than 0.
-
The volume V of a sphere of radius r feet is V = V(r) = 43r 3 Find the instantaneous rate of change of the volume with respect to the radius r at r = 2.
-
The volume V of a cube of side x meters is V = V(x) = x 3 . Find the instantaneous rate of change of the volume with respect to the side x at x = 3.
-
In physics, it is shown that the height s of a ball thrown straight up with an initial speed of 96 ft/sec from ground level is s = s(t) = - 16t 2 + 96t where t is the elapsed time that the ball is in...
-
1. 1Where do snap judgments arise from? ADAPTIVE UNCONSCIOUS BROCA'S AREA PREFRONTAL CORTEX WERNICKE'S AREA
-
Instructions: Revise the message below so that it has improved tone and formality. Also revise it for better organization (use the direct approach). Post your revision to OneNote. From: H & M Calgary...
-
8. (a) Draw the truth table of the following circuit (b) Write the function representing the following circuit (c) Write a sum-of-products representation of the following circuit. A B C Y
Study smarter with the SolutionInn App