Constrained Optimization. Cost minimisation from given Cost function with Production Constraint

The cost minimization Lagrange function is a mathematical tool used in economics to find the optimal solution to a problem involving multiple constraints. It is named after French mathematician Joseph-Louis Lagrange, who developed the concept in the 18th century.

In economics, the cost minimization Lagrange function is used to find the optimal combination of inputs (such as labor, capital, and raw materials) that a firm can use to produce a given output at the lowest possible cost. The function helps to identify the most efficient production process by taking into account the various constraints that may affect the firm's ability to produce, such as budget constraints or technological limitations.

To use the cost minimization Lagrange function, an economist will specify the inputs and outputs of the production process, as well as the costs of each input and the prices of each output. They will then use the function to determine the optimal combination of inputs that will minimize the overall cost of production, given the constraints that the firm faces. This information can be used by firms to make decisions about how to allocate their resources and optimize their production processes.
#costminimasation#lagrange

[Sanjyotibedia]

Ur video helps so many students to calculate economics numericals problems

[elizabethmusyoka]

Wow this helped me, so simple and straight

[loislucky]

Sir, I want to answer this question Given an isoquant Q= 4k power of 0.25 L power of 0.75a and the following isocost 400=2k+6L Determine the optimal combination.

[Izmar_amranumigarovich]

Very simple and understandable reverse with my teacher mine give a lot of number abd variable and make my head dizzy

[Sanjyotibedia]

Sir yr video is so helpful but try to make all vedios in hinglish language if you know Hindi and English very well

[raziqsadaqa]

Sir i solved this Question in MRs methad.

secondly Sir I put 200 as cost
cost = 200 .

then i got L = 33.3 and K =24.4

[reinhardodhiambo]

You are given the following linear production function:
Y = a1x1 + a2x2
Required:
Determine the cost function (8 marks)
d) A firm has the following production function:
0 1 100   Q  K L
Where
 0  1  0.5
, and the cost function is
C 1000
Wage rate
(w)  60, Interest rate
(r)  80
(i) Determine the number of capital and labour that the firm can hire in order to
maximize output. (3marks)
(ii) What is the maximum output the firm can produce .