Sensitivity Analysis for Profit Maximization with Respect to Per Unit Cost of Subsidiary Raw Materials

Mohajan, Devajit and Mohajan, Haradhan (2023): Sensitivity Analysis for Profit Maximization with Respect to Per Unit Cost of Subsidiary Raw Materials. Published in: Frontiers in Management Scienc , Vol. 2, No. 2 (28 February 2023): pp. 13-28.

Abstract

In this article the sensitivity analysis of an economic model is provided with detail mathematical analysis. To achieve maximum profit through sustainable way in the competitive global economy; an organization must scrutinize sensitivity analysis efficiently. In the study Cobb-Douglas production function is operated. Method of Lagrange multiplier is applied here when sensitivity analysis is investigated to obtain accurate results. The paper also uses the bordered Hessian and Jacobian to propel mathematical methods appropriately.

• Item Type: MPRA Paper
• Language: English
• Keywords: Lagrange multiplier, economic inputs, profit maximization, sensitivity analysis
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I25 - Education and Economic Development

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