The function for total production of a certain metal at a mining operation is modeled by P(KL) = 40 - K0.3.L0. where Krepresents capital spending, in units of $200,000 and L represents labor costs, in units of 10,000 labor-hours. Each hour of labor has an total cost of $70. If the company budgets $20,000,000 for the current year, determine how much should be spent on capital, how much on labor, and what total production they expect. Round production to the nearest 0.1. Click here to create a new row The amount to be spent on Capital is K= ,on Labor is L= + , and total Production is +

The function for total production of a certain metal at a mining operation is modeled by P(KL) = 40 - K0.3.L0. where Krepresents capital spending, in units of $200,000 and L represents labor costs, in units of 10,000 labor-hours. Each hour of labor has an total cost of $70. If the company budgets $20,000,000 for the current year, determine how much should be spent on capital, how much on labor, and what total production they expect. Round production to the nearest 0.1. Click here to create a new row The amount to be spent on Capital is K= ,on Labor is L= + , and total Production is +

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.9P

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