Question: 5.4. Question. (Constrained Optimization). Consider the two following constrained maximization. In each of them, determine which constraint (91 and 9) is binding and which one

5.4. Question. (Constrained Optimization).

5.4. Question. (Constrained Optimization). Consider the two following constrained maximization. In each of them, determine which constraint (91 and 9) is binding and which one is non-binding. Assume x > 0 and y> 0. Hint: By using Lagrangian, find the constrained maximal of the two following functions (f and fa) subject to the two constraints. If the optimal solution lies on the boundary of a constraint, that constraint is binding and if does not lie on the boundary of a constraint, that constraint is non-binding (1) The first maximization f(x,y) = ln (x) + In (y) subject to 91: 3x + y s 30 and 92: x + 3y = 30 (2) The second maximization 12(x, y) = In (x) + y subject to 91 : 3x + y s 30 and 92: x + 3y

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