Simple Introduction to Lagrange Multipliers

A classic problem in economics is how to maximize utility despite limited resources, such as time and money. The Lagrangian method uses a technique from calculus to mathematically measure how consumers can achieve maximum satisfaction and businesses can maximize profit (or minimize costs) within given limits. (Source)

The person in the video isn’t me, by the way. I’m just so overjoyed to find an accessible introduction to the Lagrange method that I am sharing it with the world.

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About Graham Joncas

We are a way for capital to know itself.

Posted on October 1, 2011, in Business, Economics and tagged , , , . Bookmark the permalink. 2 Comments.

  1. It is really wonderful explanation. If you get the right person who explains things, I believe there is nothing difficult
    Thank you so much

  2. Yeah – not bad.. a bit procedural/academic, it doesn’t say why it works or what it means. But non pedantic / non obnoxious for sure!

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