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Suppose we want to maximize the utility function u x2y x y x y x y 1. Write the Lagrangian function L. = subject to the following two constraints: + ≤ 100 and 2+ 8≤ 240. Also, and must be greater than or equal to 0.
2. Write the Kuhn-Tucker conditions for this problem.
3. Use trial and error to solve for the optimal values of x and y. What are the values of the Lagrange multipliers at the optimal solution?. Be sure to explain what you are doing in each step.
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