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Suppose the joint cost function of a firm producing two products X and Y is given by C = 250X 2 + 120Y 2 .
Suppose the joint cost function of a firm producing two products X and Y is given by
C = 250X2+ 120Y2.
Assuming that output of the two products is restricted at 4144. Using Lagrangian multiplier technique find the amounts of X and Y that will minimize cost and compute this cost. Also examine the cost implications of changing this optimal combination so as to produce equal amounts of both products.
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