[R] Relatively Simple Maximization Using Optim Doesnt Optimize

[Abby Spurdle]

> L= 1006.536
> L= 1006.537
> L= 1006.535
> It appears to have chosen step size 0.001, not 0.00001.  It should be
> getting adequate accuracy in both 1st and 2nd derivatives.
> Those little ripples you see in the plot are not relevant.

I'm impressed.
But you're still wrong.

Try this:
---------
#not good R code!
v = numeric ()

production3 <- function(L){
    #store in vector
    v <<- c (v, L)

   budget=100000
   Lcost=12
   Kcost=15
   K=(budget-L*Lcost)/Kcost
   machines=0.05*L^(2/3)*K^(1/3)
   return(machines)
}

optim.sol <- optim (1001, production3 ,method="CG", control = list(fnscale=-1) )

n = length (v)
print (n)

plot (1:n ,v, type="l")
---------

After 401 iterations (on my computer), the algorithm hasn't converged.
And I note it's converging extremely slowly, so I don't see any
argument for increasing the number of iterations.

And try this:
(The first 30 steps).
---------
plot (1:30 ,v [1:30], type="l")
---------

Little ripples aren't going anywhere...