Turn on thread page Beta
    • Thread Starter
    Offline

    0
    ReputationRep:
    Ok i kind of know how to work the question out its just i dont understand one section within the question.

    its Production function is Q= 240K^0.2 L^0.6 and facess the budget constraint 600= L+2K, where Q is output, K is capital input and L is labour input.

    b) specify the three slope functions of the lagrange function you specified in question a)"

    ok so i know how to set up the lagrangean function. But i dont get what this question is asking. it cant be asking for the first order conditions becuase that is asked for in part c and then i know how to work out the Lagrange and the output, etc. Just have no idea what part B is on about!

    please help! i will appreciate it!!
    • Thread Starter
    Offline

    0
    ReputationRep:
    generalbriety where are you? lol someone help me!!!
    • Wiki Support Team
    Offline

    14
    ReputationRep:
    Wiki Support Team
    (Original post by qwertyqwerty12)
    generalbriety where are you? lol someone help me!!!
    Erm, I'm here, but I don't know.
    Offline

    6
    ReputationRep:
    I think the three slope functions would be the partial derivatives of your lagrange function wrt K, L, lambda (or whatever variable you're using for the lagrange multiplier, though I've never seen anything other than lambda used) respectively. I would really help if you posted the full question though.
    • Thread Starter
    Offline

    0
    ReputationRep:
    Full Question:

    A firm has a production function in the form Q= 240K^0.2 L^0.6 and faces the budget constraint 600= L+ 2K, where Q is output, K is capital input and L is labour input.

    a) Specify the langrange function ( /\ ) you will use to solve for the maximum level of output (Q*)

    b) specify the three slopes functions of the Langrange function you specified in question (a)

    c) Specify the three first order conditions and solve for the levels of L* and K* that maximise output

    d) Find the value of the lagrange multiplier to two decimal places

    e) Find the maximum level of output (Q*) to two decimal places
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: September 1, 2007

University open days

  • University of Bradford
    All faculties Undergraduate
    Wed, 21 Nov '18
  • Buckinghamshire New University
    All Faculties Postgraduate
    Wed, 21 Nov '18
  • Heriot-Watt University
    All Schools Postgraduate
    Wed, 21 Nov '18
Poll
Black Friday: Yay or Nay?
Useful resources

Make your revision easier

Maths

Maths Forum posting guidelines

Not sure where to post? Read the updated guidelines here

Equations

How to use LaTex

Writing equations the easy way

Equations

Best calculators for A level Maths

Tips on which model to get

Student revising

Study habits of A* students

Top tips from students who have already aced their exams

Study Planner

Create your own Study Planner

Never miss a deadline again

Polling station sign

Thinking about a maths degree?

Chat with other maths applicants

Can you help? Study help unanswered threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.