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- #1

- Jan 26, 2012

- 995

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**Problem**: A company incurs costs of $C(x,y)=5x^2+2xy+3y^2+800$ (in thousands of dollars) when it produces $x$ thousand units of one product and $y$ thousand units of another. Its production capacity is such that $x+y=39$. At what production levels will the company's costs be minimized? What will be the corresponding total cost?

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**Suggestion**:

Solve this using the method of Lagrange multipliers.

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