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Unconstrained Optimization

The document discusses unconstrained optimization problems including: 1) Finding critical points of functions by taking partial derivatives and setting them equal to zero 2) Applying the second derivative test to determine if critical points are maxima, minima, or saddles 3) Examples include finding the maximum output of a production function and the profit-maximizing prices and quantities for a candy company.

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Excellino Nehemia Laksono
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63 views

Unconstrained Optimization

The document discusses unconstrained optimization problems including: 1) Finding critical points of functions by taking partial derivatives and setting them equal to zero 2) Applying the second derivative test to determine if critical points are maxima, minima, or saddles 3) Examples include finding the maximum output of a production function and the profit-maximizing prices and quantities for a candy company.

Uploaded by

Excellino Nehemia Laksono
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Unconstrained Optimization

Problem Sets Ke Tiga


• Exercise 11.1 (Halaman 468) : 7, 9, 11
• Exercise 11.2 (Halaman 476) : 7, 9
• Exercise 11.3 (Halaman 497) : 1
• Exercise 12.1 (Halaman 560) : 7
• Exercise 12.2 (Halaman 568) : 5,6
Maxima and Minima
1. If Z = f (x,y) has a relative maxima or minima
at (x0,y0), and if both fx and fy are defined for
all point closed for all point to (x0,y0), it is
necessary that (x0,y0) be a solution of the
system

 f x ( x, y )  0,

 f y ( x , y )  0
2. Suppose Z = f (x,y) has continuous
partial derivative fxx, fyy and fxy at all
points (x,y) near the critical point
(x0,y0). Let D be the function defined
by:
D(x,y) = fxx(x,y) fyy(x,y) - (fxy(x,y))2
– if D (x0,y0) > 0 and fxx(x0,y0) < 0 has a relative
maximum at (x0,y0)
– if D (x0,y0) > 0 and fxx(x0,y0) > 0 has a relative
minimum at (x0,y0)
– if D (x0,y0) < 0, f has neither a relative
maximum nor a relative minimum at (x0,y0)
– if D (x0,y0) = 0, no conclusion about an
extremum at (x0,y0) can be drawn, and
further analysis is required
Exercise:
1. Finding Critical Points
a. f (x,y) = 2x2+ y2 - 2xy + 5x - 3y + 1
b. f (x,y,z) = 2x2+ xy + y2 + 100 - z(x + y-100)
2. Applying the Second-Order Derivative Test
f (x,y) = x3+ y3 - xy
3. A Sadle Point
f (x,y) = x2+ y2
4. Maximizing Output
Let Q be a production function given by:
Q = f (l,k) = 0,54 l 2 - 0,02 l 3 + 1,89 k2 - 0,09 k3,
where l and k are the amounts of labor and
capital, respectively, and Q is the quantity of
output produced. Find the values of l and k that
maximize Q.
5. Profit Maximization
A candy company produces two types of candy, A and B, for
which the average costs of production are constant at $2
and $3 per pound, respectively. The quantities qA,qB (in
pounds) of A and B that can be sold each week are given by
the joint demand functions.
qA = 400(pB – pA) and qB = 400(9 + pA – 2pB)
Where pA and pB are the selling prices (in dollars per
pound) of A and B, respectively. Determine the selling
prices that will maximize the company’s profit.
6. A monopolist is practicing price discrimination in
the sale of a product by charging different prices
in two separate markets. In market A the demand
function is
pA = 100 – qA and in B it is
pB = 84 – qB
where qA and qB are the quantities sold per week
in A and B, and pA and pB are the respective prices
per unit. If monopolist’s cost function is
c = 600 + 4(qA + qB)
How much should be sold in each market to
maximize profit? What selling price give this
maximum profits? Find the maximum profit.

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