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Given the production function ( , ) = 80 0.7 0.3 N(x,y)=80x 0.7 y 0.3 and the budget constraint 40 60 = 200 , 000
Given the production function ( , ) = 80 0.7 0.3 N(x,y)=80x 0.7 y 0.3 and the budget constraint 40 60 = 200 , 000 40x 60y=200,000, we need to maximize production. We'll use the Lagrange multiplier method to solve this constrained optimization
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