3.

1)Find the maximum value ofQ=10KL

subject to the cost constraint K+4L = 16.

2) Estimate the change in the optimal value of Q if the cost constraint is changed to K+4L =17.

3) Is the change obtained in 2) close to the value of Lagrange multiplier? Interpret the meaning of Lagrange multiplier.

4)Use Lagrange multipliers to find the expressions for K and L which maximize output given by a Cobb-Douglas production function

Q=K0.5L0.5

subject to a cost constraint K+ L =100.