A Lagrangian equation for total profit was solved, giving a Lagrangian multiplier of 94 and an output of 28. Which of the following statements is/are true? (i) If output increases by 100%, total profit will be increased by 94%. (ii) The marginal profit is exactly 94 when Q = 28. (iii) Profit will be maximised when output is at 94. (iv) If an additional item costs less than 94, it should be produced. a.(i) and (iv) only b.None of these other available answer choices is correct c.(i) only d.(ii) and (iii) only e.(iii) only

A Lagrangian equation for total profit was solved, giving a Lagrangian multiplier of 94 and an output of 28. Which of the following statements is/are true? (i) If output increases by 100%, total profit will be increased by 94%. (ii) The marginal profit is exactly 94 when Q = 28. (iii) Profit will be maximised when output is at 94. (iv) If an additional item costs less than 94, it should be produced. a.(i) and (iv) only b.None of these other available answer choices is correct c.(i) only d.(ii) and (iii) only e.(iii) only

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.4P

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