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A manufacturer has $600,000 to spend on the production of a certain product and determines that if a units of capital and y units

 

A manufacturer has $600,000 to spend on the production of a certain product and determines that if a units of capital and y units of labor are allocated to production, then P units will be produced, where P is given by the Cobb-Douglas production function 4 1 P(x, y) = 120x 5 y 5. Suppose each unit of labor costs $3,000 and each unit of capital costs $5,000. How many units of labor and capital should be allocated in order to maximize production?

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