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    Managerial Economics Study Set 5
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    Exam 2: Optimal Decisions Using Marginal Analysis
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    Carefully Explain the Economic Importance of the Lagrange Multiplier
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Carefully Explain the Economic Importance of the Lagrange Multiplier

Question 9

Question 9

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Carefully explain the economic importance of the Lagrange multiplier. How might a manager use it in decision making?

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The Lagrange multiplier measures the mar...

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