Solution-Calculate the lagrange multiplier ?

Calculate the lagrange multiplier ?

Assignment Help Engineering Mathematics

Reference no: EM13876934

A firm operates with the production function Q = 2.5K 0.4 L0.5. Assume the price of labor and capital are $10 and $20 and the firm decides to spend only
$6,300 on variable production costs (i.e. net of fixed cost).

(a) Use the method of Lagrange Multiplier and determine the firm's level of output.

(b) Calculate the Lagrange multiplier λ.

(c) Assume that the firm increases its expenditure on variable inputs by $63 (1 %) to $6,363. Show that the level of output increases by

λ ∗ 63.

Reference no: EM13876934

Questions Cloud

What effect adoption of jit have on design of control system : List two primary financial benefits associated with a shift to JIT manufacturing. What effect does the adoption of JIT have on the design of management accounting and control systems?

What is the firm''s least cost combination of factors : A firm with a CD production function Q = 1.5K 0.5 L0.4 plans to produce 900 units of output per day. Assume the prices of labor and capital are $50 and $100 a day-What is the firm's least cost combination of factors for production of 900 units of o..

Provide summary of your hospitals organizational structure : Provide a detailed summary of your hospital's organizational structure. Include a tabulated description of the levels of professionals within the organization. Describe the duties of each major head within the organization.

Explain the possible causes for direct materials price : Explain the possible causes for direct materials price and direct materials usage variances. Who in the organization normally has influence over or responsibility for these variances?

Calculate the lagrange multiplier ? : Assume that the firm increases its expenditure on variable inputs by $63 (1 %) to $6,363. Show that the level of output increases by λ ∗ 63.

Determine and sketch the spectra for the signals : An analog signal xa(t) is bandlimited to the range 900 = F = 1100 Hz. It is used as an input to the system shown in figure. In this system, H(?) is an ideal lowpass filter with cutoff frequency Fc = 125Hz. (a) Determine and sketch the spectra for ..

Paragraphs your observation on the role of values : n your initial posting, discuss in one or two paragraphs your observation on the role of "values" in respect to the topic of potential copyright infringement. Apply your critical thinking skills to the topic of file sharing by asking; is there a c..

Determine the level of output for which profit is maximized : Derive an expression Π(q) for the firms profit function and is the rate of change of profit increasing or decreasing when the ouput level of the firm is q=10?

Identify the effects that new technologies such as jit : Identify the effects that new technologies such as JIT, flexible manufacturing systems, and TQM have on standard cost systems. Discuss behavioral concerns in establishing and implementing a standard cost system.

User Account

All Pages

Calculate the lagrange multiplier ?

Reference no: EM13876934

Reference no: EM13876934

Questions Cloud

Reviews

Write a Review

Engineering Mathematics Questions & Answers

Prime number theorem

Proof of bolzano-weierstrass to prove the intermediate value

Antisymmetric relations

Distributed random variables

Prepare a system of equations

Managing ashland multicomm services

Skew-symmetric matrices

Type of taxes and rates in spokane wa

Stratified random sample

Find the probability density function

Develop a new linear programming for an aggregate production

Discrete-time model for an economy

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT