It costs a company $15 to purchase an hour of labor and $20 to purchase an...

Transcribed Image Text:

It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L 2/3 K1/3 machines can be produced. Suppose the company has $150,000 to purchase labor and capital. a. What is the maximum number of machines it can produce? b. Use Solver Table to see how a change in the price of labor changes the optimal solution. c. Use SolverTable to see how a change in the price of capital changes the optimal solution. d. Use Solver Table to see how a change in the amount of money available changes the optimal solution. It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L 2/3 K1/3 machines can be produced. Suppose the company has $150,000 to purchase labor and capital. a. What is the maximum number of machines it can produce? b. Use Solver Table to see how a change in the price of labor changes the optimal solution. c. Use SolverTable to see how a change in the price of capital changes the optimal solution. d. Use Solver Table to see how a change in the amount of money available changes the optimal solution.