Given the Cobb-Douglas function f(x, y) = 30x0.3y0.7, x is the number of units of capital input and y is the number of units of labor input. If the company is currently utilizing 4,500 units of capital and 3,000 units of labor, find the marginal productivity of capital and the marginal productivity of labor. For the greatest increase in productivity, should management encourage increased use of capital or labor?

Given the Cobb-Douglas function f(x, y) = 30x0.3y0.7, x is the number of units of capital input and y is the number of units of labor input. If the company is currently utilizing 4,500 units of capital and 3,000 units of labor, find the marginal productivity of capital and the marginal productivity of labor. For the greatest increase in productivity, should management encourage increased use of capital or labor?

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter2: Functions

Section2.4: Average Rate Of Change Of A Function

Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.

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Given the Cobb-Douglas function f(x, y) = 30x^0.3y^0.7, x is the number of units of capital input and y is the number of units of labor input.

If the company is currently utilizing 4,500 units of capital and 3,000 units of labor, find the marginal productivity of capital and the marginal productivity of labor.

For the greatest increase in productivity, should management encourage increased use of capital or labor?

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