Output Maximization of an Agency

Pahlaj, Moolio and Islam, Jamal and Mohajan, Haradhan (2008): Output Maximization of an Agency. Published in: Indus Journal of Management & Social Sciences , Vol. 3, No. 1 (20 April 2009): pp. 39-51.

Abstract

Considering Cobb-Douglas function in three variables as an explicit form of production function, in this paper an attempt has been made to maximize an output subject to a budget constraint, using Lagrange multipliers technique, as well as necessary and sufficient conditions for optimal value have been applied. We gave interpretation of Lagrange multiplier in this specific illustration, showing its positive value, and examined the behavior of the agency.

• Item Type: MPRA Paper
• Language: English
• Keywords: Lagrange Multipliers; Economic Problems; Maximizing Output Function; Budget Constraints; Explicit Examples.
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

References

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