HWK1 - -4*x = 1 - 2*y x = -0.25 + 0.5*y 2 - x - y = 0 2 +...

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ECON-2010 HWK1 February 4, 2010 Let A_US = x Let A_M = y f(x,y) = S_US + S_M = 20 + 4*x - 2*x^2 + 15 + 5*y - y^2 = 35 + 4*x - 2*x^2 + 5*y - y^2 z = f(x,y) + lambda*[2-x-y] dz/dx = 4 - 4*x - lambda = 0 dz/dy = 5 - 2*y - lambda = 0 dz/dlambda = 2 - x - y = 0 4 - 4*x = 5 - 2*y
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Unformatted text preview: -4*x = 1 - 2*y x = -0.25 + 0.5*y 2 - x - y = 0 2 + 0.25 - 0.5*y - y = 0 2.25 - 1.5*y = 0 y = 1.5 2 - x - y = 0 2 - x - 1.5 = 0 x = 0.5 lambda = 5 - 2*y lambda = 5 - 2*1.5 lambda = 2 In this context, lambda means the marginal sales revenue....
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