An Economical Study When Cost of Irregular Raw Materials of an Industry Increases for Nonlinear Budget Constraint

Abstract

Very few researches try to work with nonlinear budget constraint. This study attempts to discuss the sensitivity analysis with the use of nonlinear budget constraint. For the efficient use of inputs every industry should inspects economic analysis for the profit maximization. In this study Lagrange multiplier technique is applied with the bordered Hessian and Jacobian. For the sustainability of an industry in the competitive global economy, the industry should proceed through the application of scientific method, such as application of optimization policy.