Q.9

The production of a manufacturer is given by the Cobb-Douglas production function f(x,y)=25x51y54 where x represents the number of units of labor (in hours) and y represents the number of units of capital (in dollars) invested. Labor costs $10 per hour and there are 8 hours in a working day, and 250 working days in a year. The manufacturer has allocated $5,000,000 this year for labor and capital. How should the money be allocated to labor and capital to maximize productivity this year? Round answers to 2 decimal places, if necessary. To maximize productivity, they should spend their money on hours of labor and invest $ This leads to a maximum value of units. Also, if the number of dollars allocated to labor and capital is increased by 1 , the number of units produced will by approximately Question Help: Video eBook