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For a company that produces respiratory masks, the Cobb-Douglas function is given by where x represents the units of labor ($100 per unit) and y
For a company that produces respiratory masks, the Cobb-Douglas function is given by where "x" represents the units of labor ($100 per unit) and "y" represents the units of capital ($150 per unit). The total costs of labor and of capital are limited by an amount of $70,000.
a. When does the maximum level of production occurs?
b. What is the maximum level of production of repiratory masks?
c. Find , the marginal productivity of the capital and interpret the answers.
f(x,y) = 120x1/3y2/3Step by Step Solution
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