6. Optimize the Cobb-Douglas production function given the following parameters. The maximum 12 and the price of about of money available to spend is $1, 200 where the price of K = L = 6. That is P = 12 and P = 6. The function is given as q = K0.4L°.6. Using the Lagrangian method, what are the optimal values of Ko and Lo?

6. Optimize the Cobb-Douglas production function given the following parameters. The maximum 12 and the price of about of money available to spend is $1, 200 where the price of K = L = 6. That is P = 12 and P = 6. The function is given as q = K0.4L°.6. Using the Lagrangian method, what are the optimal values of Ko and Lo?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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