Provide an Appropriate Response

question 9

Multiple Choice

Provide an appropriate response.
-Use Lagrange multipliers to maximize f(x, y, z) = 24x + 12y + 24z subject to

• A) max f(x, y, z) = f(12, 12, 12) = 720
• B) max f(x, y, z) = f(6, 12, 12) = 576
• C) max f(x, y, z) = f(12, 12, 6) = 576
• D) max f(x, y, z) = f(12, 6, 12) = 648

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Definitions:

Externalities

Costs or benefits that affect a party who did not choose to incur those costs or benefits, often leading to market failure if unaddressed by policy.

Rent-seeking Activities

Efforts to increase one’s share of existing wealth without creating new wealth, often through manipulation of the economic environment.

Economic Efficiency

Economic Efficiency occurs when a system allocates resources in a way that maximizes the production of goods and services at the lowest cost.

Political Corruption

The abuse of entrusted power by political leaders for private gain, undermining democracy and governance.