A farmer can produce f (x, y) = 2006x 2 + y 2 units of produce by
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A farmer can produce f (x, y) = 200√6x2 + y2 units of produce by utilizing x units of labor and y units of capital. (The capital is used to rent or purchase land, materials, and equipment.)
(a) Calculate the marginal productivities of labor and capital when x = 10 and y = 5.
(b) Let h be a small number. Use the result of part (a) to determine the approximate effect on production of changing labor from 10 to 10 + h units while keeping capital fixed at 5 units.
(c) Use part (b) to estimate the change in production when labor decreases from 10 to 9.5 units and capital stays fixed at 5 units.
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Related Book For
Calculus And Its Applications
ISBN: 9780134437774
14th Edition
Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar
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