Lagrange Multipliers

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In this video, we present the method of Lagrange Multipliers for finding max/min of a surface subject to a given constraint. We do just one a simple example here with a linear constraint function.
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Ooh I remember these! Not how to use them of course, but unless I’m really out of it, they are used in a highly theoretical proof that markets will reach overall optimal welfare on their own. The assumptions include perfect competition in every market, of course, but that’s not a math flaw, just a humanitarian flaw :)

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