In Exercises 28 through 30, let Q(x, y) be a production function, where x and y represent

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In Exercises 28 through 30, let Q(x, y) be a production function, where x and y represent units of labor and capital, respectively. If unit costs of labor and capital are given by p and q, respectively, then px + qy represents the total cost of production.


Show that the inputs x and y that maximize the production level Q(x, y) subject to a fixed cost k satisfy


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(Assume that neither p nor q is 0.) This is called a fixed-budget problem.

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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