ABSTRACT
This chapter considers the problem of maximizing or minimizing a function f: ℛ n → ℛ subject to inequality constraints such as g(x) ≤ c or g(x) ≥ c. This type of problem arises frequently in economics. For example, maximizing output y = f(x 1,x 2) subject to expenditure constraint, g(x 1,x 2) = w 1 x 1+ w 2 x 2 < c, is a typical problem.
