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Output Maximization of an Agency

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Listed:
  • Pahlaj, Moolio
  • Islam, Jamal
  • Mohajan, Haradhan

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.

Suggested Citation

  • Pahlaj, Moolio & Islam, Jamal & Mohajan, Haradhan, 2008. "Output Maximization of an Agency," MPRA Paper 50666, University Library of Munich, Germany, revised 20 Jan 2009.
    • Handle: RePEc:pra:mprapa:50666
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    References listed on IDEAS

    as
    1. Pahlaj Moolio & Jamal Nazrul Islam, 2008. "Cost Minimization of a Competitive Firm," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 2(2), pages 148-160, December.
    2. Pahlaj Moolio & Jamal Nazrul Islam & Haradhan Kumar Mohajan, 2009. "Output Maximization of an Agency," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 3(1), pages 39-51, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Lagrange Multipliers; Economic Problems; Maximizing Output Function; Budget Constraints; Explicit Examples.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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