/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 37 Give the value of the utility fu... [FREE SOLUTION] | 91Ó°ÊÓ

91Ó°ÊÓ

Give the value of the utility function at the optimal point. $$U=f(\ell, g)=10 e^{1 / 2} g^{1 / 2} \text { subject to } 3 \ell+6 g=18$$

Short Answer

Expert verified
Answer: The maximal utility value under the given constraint is approximately 5.6226.

Step by step solution

01

Apply the method of Lagrange multipliers

Use the method of Lagrange multipliers to find the optimal point at which the utility function is maximized, subject to the constraint. First, define the Lagrangian, L: $$L(\ell, g, \lambda) = 10e^{1/2} g^{1/2} - \lambda(3\ell + 6g - 18)$$ Now, find the first-order conditions by taking the partial derivatives of L with respect to ℓ, g, and λ, and setting them equal to zero: 1. \(\frac{\partial L}{\partial \ell} = -3\lambda = 0\) 2. \(\frac{\partial L}{\partial g} = 5e^{1/2} g^{-1/2} - 6\lambda = 0\) 3. \(\frac{\partial L}{\partial \lambda} = 3\ell + 6g - 18 = 0\)
02

Solve the system of equations

To solve the system of equations, start by noting that since \(\ell\) and \(g\) are both strictly positive, we have that λ ≠ 0, so \(\lambda=-1/3\). Now substitute this value into the second equation: $$5e^{1/2} g^{-1/2} - 6(-\frac{1}{3}) = 0 \Rightarrow 5e^{1/2} g^{-1/2} - 2 = 0$$ Solving for g: $$5e^{1/2} g^{-1/2} = 2 \Rightarrow g= (\frac{5}{2}e^{1/2})^{\frac{2}{3}}$$ Now, substitute the value of g into the third equation and solve for ℓ: $$3\ell + 6(\frac{5}{2}e^{1/2})^{\frac{2}{3}} - 18 = 0 \Rightarrow \ell = 6 - 2(\frac{5}{2}e^{1/2})^{\frac{2}{3}}$$
03

Calculate the value of the utility function at the optimal point

Finally, substitute the values of â„“ and g that maximize the utility function, subject to the constraint: $$U(\ell^*, g^*) = 10e^{1/2} (\frac{5}{2}e^{1/2})^{\frac{1}{3}}$$ Upon calculating this expression, we find that the value of the utility function at the optimal point is: $$U(\ell^*, g^*) = 10e^{1/2} (\frac{5}{2}e^{1/2})^{\frac{1}{3}} \approx 5.6226$$

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Understanding the Utility Function
A utility function is a mathematical representation of a consumer's preference, measuring the level of satisfaction or utility that a consumer derives from consuming a bundle of goods or services. In this exercise, the utility function given is represented by \( U = f(\ell, g) = 10 e^{1 / 2} g^{1 / 2} \). The utility function helps to quantify pleasure or satisfaction derived from goods, making it central to various economic theories. Specifically here, it tells us how utility changes with variations in the two goods \( \ell \) and \( g \). By assigning numerical values to preferences, utility functions help us make comparability feasible, laying the groundwork for optimization.
Principles of Optimization
Optimization refers to the process of making something as effective or functional as possible. In the context of utility functions, optimization is the act of finding the set of values of decision variables (here, \( \ell \) and \( g \)) that maximize or minimize a certain objective. For students, understanding optimization is critical. It involves systematically choosing the best solution from a set of feasible options.
In simplest terms, it's like selecting the best ingredients to make the best dish, with the constraints being dietary restrictions. The optimal solution ensures the highest utility or satisfaction considering all given factors.
Exploring Constraint Optimization
Constraint optimization is a type of optimization that involves an additional set of conditions or constraints. These constraints restrict the permissible solutions for the optimization problem. In this exercise, we have a constraint outlined by the equation \( 3\ell + 6g = 18 \). Constraint optimization helps us understand how to make the best decisions while adhering to limitations, like budget, time, or resources. The Lagrangian method is particularly powerful as it incorporates these constraints into the optimization process by introducing a Lagrange multiplier. This approach allows optimization while considering every limitation, ensuring the solution is both feasible and optimal.
Basics of Partial Derivatives
Partial derivatives are essential tools in calculus, used to measure how a function changes as its variables change. In the context of multivariable functions, a partial derivative with respect to one variable signifies how the function changes if only that particular variable is altered, keeping others constant.
Consider the Lagrangian function \( L(\ell, g, \lambda) = 10e^{1/2} g^{1/2} - \lambda(3\ell + 6g - 18) \). The partial derivatives here \( \frac{\partial L}{\partial \ell}, \frac{\partial L}{\partial g}, \frac{\partial L}{\partial \lambda} \) are used to find the necessary conditions for a maximum or minimum. Partial derivatives serve as the building blocks for determining critical points and solving complex optimization problems, thus playing a crucial role in this exercise.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Challenge domains Find the domain of the following functions. Specify the domain mathematically, and then describe it in words or with a sketch. $$f(x, y, z)=\ln \left(z-x^{2}-y^{2}+2 x+3\right)$$

Use Lagrange multipliers in the following problems. When the constraint curve is unbounded, explain why you have found an absolute maximum or minimum value. Shipping regulations A shipping company requires that the sum of length plus girth of rectangular boxes not exceed 108 in. Find the dimensions of the box with maximum volume that meets this condition. (The girth is the perimeter of the smallest side of the box.)

Many gases can be modeled by the Ideal Gas Law, \(P V=n R T\), which relates the temperature \((T,\) measured in kelvins ( \(\mathrm{K}\) )), pressure ( \(P\), measured in pascals (Pa)), and volume ( \(V\), measured in \(\mathrm{m}^{3}\) ) of a gas. Assume the quantity of gas in question is \(n=1\) mole (mol). The gas constant has a value of \(R=8.3 \mathrm{m}^{3} \mathrm{Pa} / \mathrm{mol}-\mathrm{K}\) a. Consider \(T\) to be the dependent variable, and plot several level curves (called isotherms) of the temperature surface in the region \(0 \leq P \leq 100,000\) and \(0 \leq V \leq 0.5\). b. Consider \(P\) to be the dependent variable, and plot several level curves (called isobars) of the pressure surface in the region \(0 \leq T \leq 900\) and \(0

Use what you learned about surfaces in Sections 13.5 and 13.6 to sketch a graph of the following functions. In each case, identify the surface and state the domain and range of the function. $$H(x, y)=\sqrt{x^{2}+y^{2}}$$

Potential functions Potential functions arise frequently in physics and engineering. A potential function has the property that a field of interest (for example, an electric field, a gravitational field, or a velocity field) is the gradient of the potential (or sometimes the negative of the gradient of the potential). (Potential functions are considered in depth in Chapter \(17 .)\) The electric field due to a point charge of strength \(Q\) at the origin has a potential function \(\varphi=k Q / r,\) where \(r^{2}=x^{2}+y^{2}+z^{2}\) is the square of the distance between a variable point \(P(x, y, z)\) and the charge, and \(k>0\) is a physical constant. The electric field is given by \(\mathbf{E}=-\nabla \varphi,\) where \(\nabla \varphi\) is the gradient in three dimensions. a. Show that the three-dimensional electric field due to a point charge is given by $$\mathbf{E}(x, y, z)=k Q\left\langle\frac{x}{r^{3}}, \frac{y}{r^{3}}, \frac{z}{r^{3}}\right\rangle$$ b. Show that the electric field at a point has a magnitude \(|\mathbf{E}|=\frac{k Q}{r^{2}} .\) Explain why this relationship is called an inverse square law.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.