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  2. For business economics
  3. Chapter 5: Optimization
  4. Optimization constrained extremum problems
  5. Method of substitution
  6. Example (film)

Example (film)

We solve the following constrained extremum problem by the use of the substitution method.
  • Maximize $z(x,y)=2xy+3y$
  • Subject to $4x+y=10$
  • Where $x,y>0$
  1. $y(x)=10-4x$
  2. $Z(x)=2x(10-4x)+3(10-4x)=-8x^2+8x+30$
  3. $Z'(x)=-16x+8$, hence $Z'(x)=0$ gives $x=\frac{1}{2}$. $Z''(\frac{1}{2})=-16$ and hence, $x=\frac{1}{2}$ is a maximum location.
  4. $y(\frac{1}{2})=10-4\cdot \frac{1}{2}=8$ and $z(\frac{1}{2},8)=32$.
Conclusion: $z(\frac{1}{2},8)=32$ is a maximum.

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Wiskunde Mathematics for business economics leeromgeving

 

  • Chapter 1: Functions of one variable
  • Chapter 2: Differentiation of functions of one variable
  • Chapter 3: Functions of two variables
  • Chapter 4: Differentiation of functions of two variables
  • Chapter 5: Optimization
    • Optimization functions of one variable
    • Applications 1
    • Optimization functions of two variables
    • Applications 2
    • Optimization constrained extremum problems
      • Minimum/maximum
      • Method of substitution
        • Example (film)
        • Exercise 1
        • Exercise 2
        • Exercise 3
        • Exercise 4
      • First-order condition constrained extremum problem
      • Method of Lagrange
    • Applications 3
    • Optimization convex/concave functions
  • Chapter 6: Areas and integrals

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