Answer: -In this problem we are trying to maximise the function f subject to certain constraints.-Where x is a vector up to Xn.-g is a constraint and there are gi constraints where i goes from 1 to k.
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How do we approach a maximisation problem?
Utility maximisation was first developed by utilitarian philosophers Jeremy Bentham and Josh Stewart Mill. In microeconomics the utility maximisation problem is the problem consumers face: "how should I spend my money in order to maximise my utility?" It is a type of optimal decision problem. It consists of choosing how much of each available good or service to consume taking into account a constraint on total spending (income) the prices of the goods and their preferences.
In mathematics computer science and economics an optimization problem is the problem of finding the best solution from all feasible solutions. Optimization problems can be divided into two categories depending on whether the variables are continuous or discrete: • An optimization problem with discrete variables is known as a discrete optimization in which an objects…
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Mon Dec 30 2002 · To obtain the profit maximizing output quantity we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity we can either compute equations or plot the data directly on a graph. The profit-maximizing output is the one at which this difference reaches its maximum. ...
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