An example of constrained optimization would be:
A)a firm trying to maximize its profits subject to its budget constraint.
B)a ball coming to rest at the bottom of a cup.
C)an analysis of how market prices change when supply conditions change.
D)An analysis of the effect of facilitating internet trading on market price.

Question

Quizplus · Accepted Answer

Constrained optimization involves maximizing or minimizing a function subject to constraints. In this case, the firm is maximizing its profits, but it is subject to the constraint of its budget limit. Therefore, it is an example of constrained optimization. The other options are not examples of constrained optimization. Constrained optimization refers to the optimization of an objective function subject to certain constraints. In this case, the objective function is to maximize profits, subject to the constraint of the firm's budget. This is a classic example of constrained optimization. The other options do not involve the optimization of an objective function subject to constraints.

An Example of Constrained Optimization Would Be