managerial economics
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managerial economics chapter three optimization techniques by: teklebirhan a. (asst. prof) e-mail: tbalemnew@gmail.com 1 aau , 2024 2 understand the concept of optimization techniques solving economic problems using the substitution method and lagrange multiplier method. understand the concept of differential calculus compute the partial derivatives. apply the partial derivatives concepts in solving economic problems chapter objectives 3 many problems in economics involve the determination of “optimal” solutions. for example, a decision maker might wish to determine the level of output that would result in maximum profit. the process of economic optimization essentially involves three steps: 1) defining the goals and objectives of the firm, 2) identifying the firm’s constrain...
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