What does the Lagrange Multiplier mean?

Jessica YungEconomicsLeave a Comment

Note: The crux of this post really is in talking about the Lagrange Multiplier, so scroll down to ‘The Lagrange’ for that. What is a constrained optimisation problem? Suppose we want to maximise our own utility (our enjoyment) but have a limited amount of resources (time and money, say) we can use to do that. Or say I want to … Read More