Roman C. answered 11/05/15
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We must minimize C(x,z) = 5·2x2 + 4·4xz = 10x2 + 16xz under the constraint V = x2z = 20.
Method 1:
We eliminate z by substituting z = 20/x2 into the cost.
C(x) = 10x2 + 320/x
dC/dx = 20x - 320/x2 = 0
20x3 = 320
x3 = 16
x = 2· 3√2
z = 20/x2 = 5 / 3√4
We apply the second derivative test
d2C/dx2 = 20 + 640/x3
C''(2· 3√2) = 20 + 640/16 = 60 > 0
So this gives the minimum cost.
Method 2: Lagrange multipliers.
We solve the system
1: ∂C/∂x = λ∂V/∂x
2: ∂C/∂z = λ∂V/∂z
3: V(x,z) = 20
This system is
1: 20x + 16z = 2λxz
2: 16x = λx2
3: x2z = 20
Equation 2 gives us that either x = 0, which we discard (Volume would be 0), or λx = 16
Substituting λx = 16 into equation 1 and solving it for z gives z = 5x/4.
Plugging it into equation 3 gives
5x3/4 = 20
x3 = 16
x = 2· 3√2
z = 20/x2 = 5 / 3√4
z = 20/x2 = 5 / 3√4
Since this is the only extremum, we only need to pick two points one with x < 2· 3√2 and one with x > 2· 3√2 and see that the cost is bigger than at the candidate point in both cases. This is the case here, so it is a minimum.
Another way is using a Bordered Hessian Criterion, but that would be harder.