1 Output Maximization For the Keurig Company, the relationship between output K Cups (Q), the number of assembly line workers (L) who package, label and ship the finished product, and the Keurig Cup Machines (K) is given by the function The wage for the workers(C L )is $90 day and the cost of the Keurig cup machines (C K ) is $180 a If Keurig's total budget to spend is C $14,220, what is the output maximizing combination of hours of labor and Keurig machines that the company should employ b What is the Total Output ( of K cups) produced at the output maximizing combination of labor and capital (Keurig Machines) that you found in part a c (CONTINUED ) Draw a graph to show the intuition of the output maximization process you just used in part 1a above (Hint you need 2 lines Be sure to label which element is Fixed and which you are solving for )Then explain what you've drawn ( Note You DON'T NEED to label all numeric values ) d What would be the effect of an INCREASE in the cost of labor from $90 to $140 per day What are the effects on Total Production (Q) Will the ratio of Labor to Capital change Why (concept only you do not have to resolve the problem)

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1 Output Maximization For the Keurig Company, the relationship between output    K Cups  (Q), the number of assembly line workers (L) who package, label and ship the finished product, and the Keurig Cup Machines (K) is given by the function  The wage for the workers(C L )is $90 day and the cost of the Keurig cup machines (C K ) is $180  a If Keurig's total budget to spend is C  $14,220, what is the output maximizing combination of hours of labor and Keurig machines that the company should employ  b What is the Total Output (  of K cups) produced at the output maximizing combination of labor and capital (Keurig Machines) that you found in part a  c (CONTINUED   ) Draw a graph to show the intuition of the output maximization process you just used in part 1a above (Hint  you need 2 lines  Be sure to label which element is Fixed and which you are solving for )Then explain what you've drawn  ( Note  You DON'T NEED to label all numeric values ) d What would be the effect of an INCREASE in the cost of labor from $90 to $140 per day  What are the effects on Total Production (Q)  Will the ratio of Labor to Capital change Why (concept only   you do not have to resolve the problem)

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1.Output-Maximization For the Keurig Company, the relationship between output - K-Cups (Q), the number of assembly line workers (L) who package, label and ship the

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