A firm's total cost function is: C = 6x2 - xy + 10y2 + 30, subject to the production quota x + y = 34. Construct the Lagrange function and solve for the equilibrium values. Calculate the total cost. What is the equilibrium value of x? What is the equilibrium value of y?     What is the equilibrium value of λ?     What is the optimized value of cost?

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.