Calculate and interpret the Lagrangian multiplier for this problem.

Felix Plastics Inc. has determined that the two most important factors influencing share of the mar Show more Felix Plastics Inc. has determined that the two most important factors influencing share of the market (S) are quality control expenditures (Q) and advertising expenditures (A). The function that relates these three variables is given below. Market share is measured in percentages and expenditures are measured in millions of dollars. S = -1.5Q 2 2A 2 + 2QA + Q +10A + 25 a)Determine the combination of quality control and advertising expenditures that will maximize the firms market share and determine what the market share will be. b)The Financial Vice President of Felix Plastics has announced that because of major capital expenditures that the firm intends to undertake total spending on quality control and advertising cannot exceed $5 million during the coming year. a.Determine the combination of quality control and advertising expenditures that will maximize the firms market share subject to this constraint and determine what the market share will be. b.Calculate and interpret the Lagrangian multiplier for this problem. c.Set up and solve the constrained problem using Solver. Run the reports and look at the Sensitivity report. Indicate if the value of Lagrange Multiplier value is the same as computed by hand. Show less

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