(iii) Consider the function C(Q₁, Q₂)=Q-30102+Q2. What level of Q₁ and Q₂ locally minimise this function?

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 17EQ
icon
Related questions
Question
(iii)
(iv)
Consider the function C(Q₁, Q₂) = Q₁³−3Q₁Q₂+Q2. What level of Q₁ and Q₂ locally
minimise this function?
The economy of ACT is in equilibrium when the system of equations
|2xz+xy+z=2√√z=11
|xyz = 6
are at x = 3; y = 2 and z=1. Suppose the premier can change variable z by a simple decree.
If premier raises z to 1.1, use calculus to estimate the change in x and y.
If x were in the control of premier and not y or z, can the method you used in
(a) be employed to estimate the effect of reducing x from 3 to 2.95? Justify your
answer.
a.
b.
Transcribed Image Text:(iii) (iv) Consider the function C(Q₁, Q₂) = Q₁³−3Q₁Q₂+Q2. What level of Q₁ and Q₂ locally minimise this function? The economy of ACT is in equilibrium when the system of equations |2xz+xy+z=2√√z=11 |xyz = 6 are at x = 3; y = 2 and z=1. Suppose the premier can change variable z by a simple decree. If premier raises z to 1.1, use calculus to estimate the change in x and y. If x were in the control of premier and not y or z, can the method you used in (a) be employed to estimate the effect of reducing x from 3 to 2.95? Justify your answer. a. b.
Expert Solution
steps

Step by step

Solved in 4 steps with 24 images

Blurred answer
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning