Gia F.
asked • 04/20/23Cobb-Douglas Calculus Problem
A company has 9300 dollars to invest, which must be divided between capital expenditures and labor. Each unit of labor costs the company 10 dollars, and each unit of capital costs 10 dollars. Therefore 10L+50K=9300,
where L and K are the units of labor and capital, respectively. Production output is modeled by the Cobb-Douglas formula
P=L^0.2K^0.8
Find the values of L and K which maximize production
More
1 Expert Answer
See the Video
Still looking for help? Get the right answer, fast.
Ask a question for free
Get a free answer to a quick problem.
Most questions answered within 4 hours.
OR
Find an Online Tutor Now
Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.
William W.
Please verify capital cost per unit. The words say $10/unit but the equation shows $50/unit04/20/23