Section 14.8: Lagrange Multipliers
Exercise 28
Referring to Exercise 27, we now suppose that the production is fixed at \(bL^\alpha K^{1-\alpha} = Q\), where Q is a constant. What values of L and K minimize the cost function \(C(L, K) = mL + nK\)?
Referring to Exercise 27, we now suppose that the production is fixed at \(bL^\alpha K^{1-\alpha} = Q\), where Q is a constant. What values of L and K minimize the cost function \(C(L, K) = mL + nK\)?