Question

Solve the following optimisation problem

max-r* +2r+1

s.t..r 0

0 0
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Answer #1

In order to solve the optimization problem, find the first derivative of the equation and put it equal to 0

F'(x) = -2x+2 = 0

This gives x = 1

Also, calculate the second derivative

F''(x) = -2

Since the second derivative is less than 0, the value of x = 1 is the absolute maximum.

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