.There is two goods X and Y. Their demand function is following: X=144-Px and Y=-250-2Py the...

 

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.There is two goods X and Y. Their demand function is following: X=144-Px and Y=-250-2Py the production quota is 2X+2Y=80 where cost of production is; C=2x²+2y²+ 2xy +70, Now optimizes the profit. (a) maximize the profit. b) Now use the Bordered Hessian method to show that all the optimal values that you find in maximize the profit. c) Define the significance of Lagrange Multiplier in optimization using this context. What is the other name of Lagrange Multiplier? Please briefly discuss how it will affect a firm's decision in this context? .There is two goods X and Y. Their demand function is following: X=144-Px and Y=-250-2Py the production quota is 2X+2Y=80 where cost of production is; C=2x²+2y²+ 2xy +70, Now optimizes the profit. (a) maximize the profit. b) Now use the Bordered Hessian method to show that all the optimal values that you find in maximize the profit. c) Define the significance of Lagrange Multiplier in optimization using this context. What is the other name of Lagrange Multiplier? Please briefly discuss how it will affect a firm's decision in this context?

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Optimization and Lagrange Multiplier Analysis for Production Problem Given Demand functions X 144 Px ... View the full answer