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16:07
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ECON MATHS
Constrained Optimisation maximize profit function subject to constraint using Lagrange's multiplier
In this video we will solve a problem on constrained Optimisation. maximise the following profit function: π = 50x – 2x2– xy – 3y2 + 95y St: x + y = 25 Where x and y are the outputs of two products produced by the firm. First we form Lagrangian function by first setting the constraint function equal to zero 25 — x — y = 0 The next ...
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