Problem 7. Lagrangian Multiplier. Jamal and Jameel Barood own and operate Jad, Inc., a Hebron-based installer of conversion packages for vans manufactured by the major auto companies. J&J has fixed capital and labor expenses of $1.2 million per year, and variable materials expenses average $2,000 per van conversion. Recent operating experience suggests thefollowing annual demand relation for J&J products: Q = 1,000 - 0.1Pwhere Q is the number of van conversions (output) and P is price.A. Calculate J&J's profit-maximizing output, price, and profit levels.B. Using the Lagrangian multiplier method, calculate profit-maximizing output, price, and profit levels in light of a parts shortage that limits J&J's output to 300 conversions during the coming year.C. Calculate and interpret 1, the Lagrangian multiplier.D. Calculate the value to J&J of having the parts shortage eliminated.Please solve the question in the picture and show the solution steps step by step

Problem 7. Lagrangian Multiplier. Jamal and Jameel Barood own and operate J&J, Inc., a Hebron-based installer of conversion packages for vans manufactured by the major auto companies. J&J has fixed capital and labor expenses of $1.2 million per year, and variable materials expenses average $2,000 per van conversion. Recent operating experience suggests the following annual demand relation for J&J products: Q= 1,000 - 0.1P where Q is the number of van conversions (output) and P is price. A. Calculate J&J's profit-maximizing output, price, and profit levels. B. Using the Lagrangian multiplier method, calculate profit-maximizing output, price, and profit levels in light of a parts shortage that limits J&J's output to 300 conversions during the coming year. C. Calculate and interpret A, the Lagrangian multiplier. D. Calculate the value to J&J of having the parts shortage eliminated