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In: Economics

Questions 1 relate to the following constrained optimization problem: maximize z(x,y)=4x^2-2xy+6y^2 subject to x+y=72. subject to...

  1. Questions 1 relate to the following constrained optimization problem: maximize z(x,y)=4x^2-2xy+6y^2 subject to x+y=72. subject to . A) What is the optimal value of X?

B) What is the optimal value of Y?

C) What is the maximized value of Z?

Solutions

Expert Solution

To solve the maximization problem we use the Lagrangian method:

Since our equation is z(x,y)=4x2-2xy+6y2 subject to the constraint x+y=72, therefore the Lagrangian will be

Differentiating this with respect to x,

(consider this as eq 1)

Differentiating the Lagrangian with respect to y now,

(consider this as eq 2)

Equating eq 1 with eq 2 we get,

using the above relationship and putting it in the constraint eq x+y=72, we get

and

A) The optimal value of x is 42.

B) The optimal value of y is 30.

C)

Solcing z for the maximum value of z we get,

z=4x2-2xy+6y2

i.e. z=4(42)2-2(42)(30)+6(30)2

z = 9936

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