Abstract

ON DYNAMIC OPTIMIZATION TO ENTREPRENEURS? PROBLEM

**AYENI, ADENIYI ABIMBOLA

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ABSTRACT All entrepreneurs are business persons but not all persons are entrepreneurs. The entrepreneur is the business person who is not satisfied with his/her performance and therefore always finds ways to improve and grow. It is on that note that this work employed the use of input-out model of dynamic optimization as a process of breaking or simplifying the intractable problem of low profit faced by entrepreneurs into tractable sub-problems where ?n(Yn-1, Xn), 1 ? n ? N was the objective function for n ? stage and Xn, 1 ? n ? N was the nth decision variable at stage n. Then two logical examples considered revealed that when dynamic optimization was employed, the optimality Xn (output variable) was not equal to Yn (input variable). That is, the profit of the entrepreneurs was maximized at minimized cost. Then recommendations were made.

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