Re: DSE 2009 Simple Maximization Question

Posted by vishp on Jun 23, 2017; 10:54am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-Simple-Maximization-Question-tp7606182p7606183.html

Using Lagrangin optimization method,
L=x^2-y^2+p(1-x-y)
dL/dx=2x-p=0....(1)
dL/dy=-2y-p=0.... (2)
dL/dp=1-x-y=0....(3)
(1)/(2) gives, -x=y. put this value in (3), you will get 1=0.. this is not possible at all.. so answer is no solution.