Output Maximization of an Agency

Pahlaj Moolio, Jamal Islam and Dr Haradhan Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: Considering Cobb-Douglas function in three variables as an explicit form of production function, in this paper an attempt has been made to maximize an output subject to a budget constraint, using Lagrange multipliers technique, as well as necessary and sufficient conditions for optimal value have been applied. We gave interpretation of Lagrange multiplier in this specific illustration, showing its positive value, and examined the behavior of the agency.

Keywords: Lagrange Multipliers; Economic Problems; Maximizing Output Function; Budget Constraints; Explicit Examples. (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2008-03-11, Revised 2009-01-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

Published in Indus Journal of Management & Social Sciences 1.3(2009): pp. 39-51

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Related works:
Journal Article: Output Maximization of an Agency (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50666

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