A mathematical technique used to solve constrained optimization ...

[storky111]

A mathematical technique used to solve constrained optimization problems (finding the consumer optimum, for example) is:
 
  A) the method of Lagrange multipliers.
  B) the Cobb-Douglas method.
  C) the Slutsky method.
  D) the Hicks substitution method.

Question 2

Refer to Scenario 17.3. If the fire protection program were in place, the company could insure the warehouse for a premium equal to
 
  A) the loss from the fire, 300,000.
  B) the expected loss from the fire, 300.
  C) the expected loss from the fire, 3,000.
  D) the cost of the fire protection program, 80.
  E) 0.

[peilian]

Answer to Question 1

A

Answer to Question 2

B