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Unconstrained and Constrained Maximization

The document discusses two types of maximization: unconstrained and constrained. Unconstrained maximization focuses on optimizing a function without restrictions, involving finding stationary points and analyzing derivatives. Constrained maximization involves maximizing a function under specific conditions, often using techniques like Lagrange multipliers and applicable in real-world scenarios with limited resources.

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ruchikajaryal14
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46 views9 pages

Unconstrained and Constrained Maximization

The document discusses two types of maximization: unconstrained and constrained. Unconstrained maximization focuses on optimizing a function without restrictions, involving finding stationary points and analyzing derivatives. Constrained maximization involves maximizing a function under specific conditions, often using techniques like Lagrange multipliers and applicable in real-world scenarios with limited resources.

Uploaded by

ruchikajaryal14
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNCONSTRAINED PROFIT(maxi)

COST(min)
AND
CONSTRAINED
MAXIMISATION
TYPES OF MAXIMIZATION?

Unconstrained Constrained
Maximization Maximization
Unconstrained
Steps
MAXIMIZATION
1)Find the derivative of the function with
respect to x and y, then put it equals to zero
to find the values of x and y points which is
called as stationary points.
Unconstrained maximization is df/dx = 0 - (1)
an optimization technique used df/dy = 0 - (2)
when you want to maximize (or
minimize) a function without any By solving (1) and (2), we have points
restrictions or limitations on the (x, y) -> stationary points
variables. In these problems,
you only need to focus on 2)Second step is to find second order
finding the maximum point of derivative of function with respect to x and y
the function, with no external and xy, then solve the equation AC-B^2.
conditions. 3)Last step is to find the maximum or
minimum value of that function through
extreme value.
Example
Interpretation
The first order derivatives tell about second derivative tells about the
*the direction of the function
whether the function is increasing *Rate of increase or
or decreasing.
decrease whether the
curve is concave up or
concave down at that
point
Constrained Maximisation

Maximizing a function subject to


constraints (conditions that must be met).
• Example:

• Solution: Use techniques like the


Lagrange multiplier.
Applications:
• Common in real-world situations with
limited resources or requirements (budget,
time, materials).
We can also solve this with the help of

•Determinants
•Hessian Matrix
THANKYOU!!

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