The total cost function of a firm that produces its product on two assembly lines is given as: subject to the constraint: TC= 3X 2 +6y 2 - XY subject to the constraint: X+Y = 20 The problem facing the...




The total cost function of a firm that produces its product on two assembly lines is given as:






subject to the constraint:







TC= 3X2+6y2- XY





subject to the constraint:





X+Y = 20















The problem facing the firm is to determine the least-cost combination of output on assembly lines X and Y subject to the side condition that total output equal 20 units.


(A)Use the Lagrangian multiplier method to determine X and Y that lead to the minimization of TC.


(B) Verify that the values of X and Y minimize the TC, then Find the TC given the values of X and Y.


(C)Interpret the value of the Lagrangian multiplier.





Jun 05, 2022
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