Editing Lagrange multiplier (section)

===Economics===

In many models in [[mathematical economics]] such as [[general equilibrium model]]s, consumer behavior is implemented as [[utility maximization problem|utility maximization]] and firm behavior as [[profit maximization]], both entities being subject to constraints such as [[budget constraint]]s and [[production function|production constraints]]. The usual way to determine an optimal solution is achieved by maximizing some function, where the constraints are enforced using Lagrangian multipliers.<ref>{{cite book |first1=M. I. |last1=Kamien |author-link=Morton Kamien |first2=N. L. |last2=Schwartz |author-link2=Nancy Schwartz |title=Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management |location=New York |publisher=Elsevier |edition=Second |year=1991 |isbn=0-444-01609-0 |url=https://books.google.com/books?id=0IoGUn8wjDQC }}</ref><ref>{{cite journal |last1=Glötzl |first1=Erhard |last2=Glötzl |first2=Florentin |last3=Richters |first3=Oliver |title=From constrained optimization to constrained dynamics: extending analogies between economics and mechanics |journal=Journal of Economic Interaction and Coordination |volume=14 |pages=623–642 |date=2019 |issue=3 |doi=10.1007/s11403-019-00252-7|hdl=10419/171974 |hdl-access=free }}</ref><ref>{{cite journal |first1=John V. |last1=Baxley |first2=John C. |last2=Moorhouse |title=Lagrange Multiplier Problems in Economics |journal=The American Mathematical Monthly |volume=91 |issue = 7 |date=1984 |pages=404–412|doi=10.1080/00029890.1984.11971446 }}.</ref><ref>{{cite journal |first1=Jitka  |last1=Janová |date=2011 |title=Applications of a constrained mechanics methodology in economics |journal=European Journal of Physics |volume=32 |issue=6 |pages=1443–1463 |doi=10.1088/0143-0807/32/6/001|arxiv=1106.3455 |bibcode=2011EJPh...32.1443J }}</ref>