Economic Investigation of Lagrange Multiplier if Cost of Inputs and Budget Size of a Firm Increase: A Profit Maximization Endeavor
AbstractIn this study method of Lagrange multiplier is considered to investigate profit maximization policy. In the twenty first century global economy faces serious complexities. Sensitivity analysis of economic firms becomes essential part of sustainable economic environment. The method of Lagrange multiplier is a very useful and powerful technique in multivariable calculus that is applied in economic models to obtain higher dimensional unconstrained problem from the lower dimensional constrained problems. This paper proceeds with Cobb-Douglas production function, where 6×6 bordered Hessian and 6×6 Jacobian are used to examine sensitivity analysis efficiently and elaborately.
How to Cite
Mohajan, H. K., & Mohajan, D. (2023). Economic Investigation of Lagrange Multiplier if Cost of Inputs and Budget Size of a Firm Increase: A Profit Maximization Endeavor. Annals of Spiru Haret University. Economic Series, 23(2). https://doi.org/10.26458/23219
Copyright (c) 2023 Haradhan Kumar Mohajan, Devajit Mohajan
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.