A manager has been allotted $8,000 to spend on the development and promotion of a new product.
Question:
A manager has been allotted $8,000 to spend on the development and promotion of a new product. It is estimated that if x thousand dollars are spent on development and y thousand dollars on promotion, approximately f(x, y) = 50x1/2y3/2 units of the product will be sold.
a. How much money should the manager allocate to development and how much to promotion to maximize sales?
b. Suppose the manager is allotted an extra $1,000 for development and promotion. Use the Lagrange multiplier λ to estimate the change in the maximum sales level.
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a We seek to maximize Substituting into g 8 yields x 2 ...View the full answer
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Jonas Araujo
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Related Book For 
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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