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Suppose a Cobb - Douglas Production function is given by P ( L , K ) = 1 0 L 0 0 . 7 5
Suppose a CobbDouglas Production function is given by where is units of labor, is units of capital, and is total units that can be produced with this laborcapital combination. Suppose each unit of labor costs $ and each unit of capital costs $ Further suppose a total of $ is available to be invested in labor and capital combined a How many units of labor and capital should be "purchased" to maximize production subject to the budgetary constraint? Round to the nearest whole number, if necessary. Labor: units Capital: units b What is the maximum number of units of production under the given budgetary conditions? Round to the nearest whole number, if necessary. Maximum production: units
Suppose a CobbDouglas Production function is given by
where is units of labor, is units of capital, and is total units that can be produced with this laborcapital combination. Suppose each unit of labor costs $ and each unit of capital costs $ Further suppose a total of $ is available to be invested in labor and capital combined
a How many units of labor and capital should be "purchased" to maximize production subject to the budgetary constraint? Round to the nearest whole number, if necessary.
Labor: units
Capital: units
b What is the maximum number of units of production under the given budgetary conditions? Round to the nearest whole number, if necessary.
Maximum production: units
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