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Suppose you are running a factory, producing anvils that requires steel as a raw material. Your costs are predominantly human labor (h), which is $20
Suppose you are running a factory, producing anvils that requires steel as a raw material. Your costs are predominantly human labor (h), which is $20 per hour for your workers, and the steel itself (s), which runs for $160 per ton. Suppose your revenue is loosely modeled by the following equation: 100h^(2/3) s^(1/3). If your budget is $10,000, how would you maximize revenue? Solve this problem using the Lagrangian method.
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