Given utility maximization problem U= Q1Q2 subject to 10Q1 +2Q2=240 a. Derive the Lagrange function
b. Derive the first order conditions
c. Use Cramer’s rule to find the critical values of Q1, Q2 and

look at the picture.

y-intercept for the function on a picture is 4 → point (0, 4).

y-intercept for the function

is for x = 0. substitute:

y-intercept is 8 → point (0, 8).

explanation:

remove parenthesis:

=

apply rule

=

multiply fractions:

=

=

divide:

=

mordancy.