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 . A) What is the optimal value of X?
B) What is the optimal value of Y?
C) What is the maximized value of Z?
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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