A manufacturing company has determined that the number of units of production is determined by the production function f(x, y) = 10x²5 y3/5 where x is the number of units of labor and y is the number of units of capital used. The cost of labor is $90 per unit and the cost per unit of capital is $70. The company would like to maximize its production given that its total costs cannot exceed $2500. 54.1 How many units of labor should the company use? O Give your answer as a decimal accurate within ±0.2% of the exact answer.

A manufacturing company has determined that the number of units of production is determined by the production function f(x, y) = 10x²5 y3/5 where x is the number of units of labor and y is the number of units of capital used. The cost of labor is $90 per unit and the cost per unit of capital is $70. The company would like to maximize its production given that its total costs cannot exceed $2500. 54.1 How many units of labor should the company use? O Give your answer as a decimal accurate within ±0.2% of the exact answer.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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