I have the following maximization problem <munder> <mo movablelimits="true" form="prefix

ban1ka1u

ban1ka1u

Answered question

2022-07-08

I have the following maximization problem
max h m 1 + 10 ( h ) 1 / 4 + h + m 2 2 ( h ) 1 / 4 + m 3 ( h ) 1 / 4
where m 1 , m 2 , m 3 are three fixed values. The FOC for a maximum is
10 4 h 3 / 4 + 1 1 2 h 3 / 4 1 4 h 3 / 4 = 0
Rearranging
7 4 h 3 / 4 = 1
Well, now I have no idea... how can I go on? How can I say which level of h maximizes my problem? Of course, I don't want you to solve, but I just would like to get a hint! Thank you in advance!

Answer & Explanation

razdiralem

razdiralem

Beginner2022-07-09Added 15 answers

Are you saying you want help solving
( 7 / 4 ) h 3 / 4 = 1
If so, multiply by 4/7, take reciprocals on both sides, raise both sides to the power 4, and take the cube root on both sides.

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