Solution
ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2001/iii/paper-31/2/solution
Past exam of the mathematics course of the University of Cambridge 2001 iii Paper 31 2 Solution by
Codex 0 Created 2026-10-03 Updated 2026-10-14
Choose the sign conventionThis is the optimization Lagrangian; equality-constraint Lagrange multipliers are unrestricted in sign. The Lagrangian sufficiency theorem for minimization says: if satisfies and globally minimizes on for some , then it globally minimizes the constrained objective function. Indeed, for every feasible ,This is a full global certificate, not merely stationarity. No convexity is needed for the implication, although convexity commonly supplies the required global optimization Lagrangian minimum.
Let , setting , and assume is finite. The Strong Lagrangian property at means that a finite multiplier attains the constrained value as an unconstrained lower bound:This includes dual attainment, but need not include primal attainment. A non-vertical supporting hyperplane of a value function at has a finite slope and supports the epigraph from below:If this inequality holds, then for every ,so . Conversely restricting the infimum to gives , even if the primal infimum is approached only by a sequence. Thus equality holds. In the reverse direction, the Strong optimization Lagrangian identity implies for every . Taking the infimum over yields the supporting inequality, with empty fibres causing no problem. This proves both implications without a convexity or attainment assumption beyond finite .
For the advertising calculation, measure the budget in thousands of pounds by . Requiring the full budget to be spent gives , with . Substitute to reduce the maximization problem toIts second derivative is , so the unique constrained maximum is obtained by clipping the stationary point:The upper constraint never clips the interior formula because for . The maximal revenue in thousands of pounds isEquivalently the revenue Hessian is , negative definite since its leading minor is negative and its determinant is seven. Thus the full-budget affine feasible set has a unique global maximum.
At the two requested budgets,The units in the middle columns are minutes; the last column is thousands of pounds. Revenue measured in pounds is , soAn additional advertising pound therefore increases optimized revenue locally by £2.50 at the smaller budget and £0.25 at the larger budget. These are marginal rates, not exact finite-difference increments: on the interior branch .
The maximization multiplier in equals on the interior branch. The sign is consistent with the minimization convention above applied to , whose supporting slope is . If spending is only capped by the budget, rather than required to equal it, these same answers apply at the two budgets. Beyond £11,000 the unconstrained maximum is affordable, so further allowed spending is unused and the capped-budget value is constant; forced full spending would instead lower revenue.
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