A firm's total cost function is: C = 5x2 + 2xy + 3y2 + 800, subject to the production quota x + y = 39. Construct the Lagrange function and solve for the equilibrium values. Calculate the total cost. a)What is the equilibrium value of λ? b)What is the optimized value of cost? c)What is the value of the determinant of the Hessian matrix?
A firm's total cost function is: C = 5x2 + 2xy + 3y2 + 800, subject to the production quota x + y = 39. Construct the Lagrange function and solve for the equilibrium values. Calculate the total cost. a)What is the equilibrium value of λ? b)What is the optimized value of cost? c)What is the value of the determinant of the Hessian matrix?
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 23EQ
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A firm's total cost function is: C = 5x2 + 2xy + 3y2 + 800, subject to the production quota x + y = 39.
Construct the Lagrange function and solve for the equilibrium values. Calculate the total cost.
a)What is the equilibrium value of λ?
b)What is the optimized value of cost?
c)What is the value of the determinant of the Hessian matrix?
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