To find the extreme values (maximum or minimum) of a function f(x,y) of two variables:
1. Take the partial derivatives fx(x,y) and fy(x,y) and set them equal to 0 to find the stationary points.
2. At each stationary point, calculate the second partial derivatives fxx, fyy, and fxy.
3. Use the signs of fxx and the determinant of the Hessian (fxx*fyy - fxy^2) to determine whether the stationary point is a maximum or minimum. If the determinant is positive and fxx is negative, it is a maximum; if the determinant is positive and fxx is positive, it