Chapter 14.5, Problem 42E

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8th Edition

James Stewart

ISBN: 9781305266643

Textbook Problem

A manufacturer has modeled its yearly production function *P* (the value of its entire production, in millions of dollars) as a Cobb-Douglas function

*P*(*L*, *K*) = 1.47*L*^{0.65}*K*^{0.35}

where *L* is the number of labor hours (in thousands) and *K* is the invested capital (in millions of dollars). Suppose that when *L* = 30 and *K* = 8, the labor force is decreasing at a rate of 2000 labor hours per year and capital is increasing at a rate of $500,000 per year. Find the rate of change of production.

To determine

**To find:** The rate of change of production.

Explanation

**Given:**

The Cobb-Douglas function is
*L* is the number of labor hours (in thousands) and *K* is the invested capital (in millions of dollars).

The values of

**Chain Rule:**

“Suppose that

**Calculation:**

The Cobb-Douglas function is

By using chain rule, obtain the value of

Sect-14.1 P-1ESect-14.1 P-2ESect-14.1 P-3ESect-14.1 P-4ESect-14.1 P-5ESect-14.1 P-6ESect-14.1 P-7ESect-14.1 P-8ESect-14.1 P-9ESect-14.1 P-10E

Sect-14.1 P-11ESect-14.1 P-12ESect-14.1 P-13ESect-14.1 P-14ESect-14.1 P-15ESect-14.1 P-16ESect-14.1 P-17ESect-14.1 P-18ESect-14.1 P-19ESect-14.1 P-20ESect-14.1 P-21ESect-14.1 P-22ESect-14.1 P-23ESect-14.1 P-24ESect-14.1 P-25ESect-14.1 P-26ESect-14.1 P-27ESect-14.1 P-28ESect-14.1 P-29ESect-14.1 P-30ESect-14.1 P-31ESect-14.1 P-32ESect-14.1 P-33ESect-14.1 P-34ESect-14.1 P-35ESect-14.1 P-36ESect-14.1 P-37ESect-14.1 P-38ESect-14.1 P-39ESect-14.1 P-40ESect-14.1 P-41ESect-14.1 P-42ESect-14.1 P-43ESect-14.1 P-44ESect-14.1 P-45ESect-14.1 P-46ESect-14.1 P-47ESect-14.1 P-48ESect-14.1 P-49ESect-14.1 P-50ESect-14.1 P-51ESect-14.1 P-52ESect-14.1 P-53ESect-14.1 P-54ESect-14.1 P-55ESect-14.1 P-56ESect-14.1 P-57ESect-14.1 P-58ESect-14.1 P-59ESect-14.1 P-60ESect-14.1 P-61ESect-14.1 P-62ESect-14.1 P-63ESect-14.1 P-64ESect-14.1 P-65ESect-14.1 P-66ESect-14.1 P-67ESect-14.1 P-68ESect-14.1 P-69ESect-14.1 P-70ESect-14.1 P-71ESect-14.1 P-72ESect-14.1 P-73ESect-14.1 P-74ESect-14.1 P-75ESect-14.1 P-76ESect-14.1 P-77ESect-14.1 P-78ESect-14.1 P-79ESect-14.1 P-80ESect-14.1 P-81ESect-14.2 P-1ESect-14.2 P-2ESect-14.2 P-3ESect-14.2 P-4ESect-14.2 P-5ESect-14.2 P-6ESect-14.2 P-7ESect-14.2 P-8ESect-14.2 P-9ESect-14.2 P-10ESect-14.2 P-11ESect-14.2 P-12ESect-14.2 P-13ESect-14.2 P-14ESect-14.2 P-15ESect-14.2 P-16ESect-14.2 P-17ESect-14.2 P-18ESect-14.2 P-19ESect-14.2 P-20ESect-14.2 P-21ESect-14.2 P-22ESect-14.2 P-23ESect-14.2 P-24ESect-14.2 P-25ESect-14.2 P-26ESect-14.2 P-27ESect-14.2 P-28ESect-14.2 P-29ESect-14.2 P-30ESect-14.2 P-31ESect-14.2 P-32ESect-14.2 P-33ESect-14.2 P-34ESect-14.2 P-35ESect-14.2 P-36ESect-14.2 P-37ESect-14.2 P-38ESect-14.2 P-39ESect-14.2 P-40ESect-14.2 P-41ESect-14.2 P-42ESect-14.2 P-43ESect-14.2 P-44ESect-14.2 P-45ESect-14.2 P-46ESect-14.3 P-1ESect-14.3 P-2ESect-14.3 P-3ESect-14.3 P-4ESect-14.3 P-5ESect-14.3 P-6ESect-14.3 P-7ESect-14.3 P-8ESect-14.3 P-9ESect-14.3 P-10ESect-14.3 P-11ESect-14.3 P-12ESect-14.3 P-13ESect-14.3 P-14ESect-14.3 P-15ESect-14.3 P-16ESect-14.3 P-17ESect-14.3 P-18ESect-14.3 P-19ESect-14.3 P-20ESect-14.3 P-21ESect-14.3 P-22ESect-14.3 P-23ESect-14.3 P-24ESect-14.3 P-25ESect-14.3 P-26ESect-14.3 P-27ESect-14.3 P-28ESect-14.3 P-29ESect-14.3 P-30ESect-14.3 P-31ESect-14.3 P-32ESect-14.3 P-33ESect-14.3 P-34ESect-14.3 P-35ESect-14.3 P-36ESect-14.3 P-37ESect-14.3 P-38ESect-14.3 P-39ESect-14.3 P-40ESect-14.3 P-41ESect-14.3 P-42ESect-14.3 P-43ESect-14.3 P-44ESect-14.3 P-45ESect-14.3 P-46ESect-14.3 P-47ESect-14.3 P-48ESect-14.3 P-49ESect-14.3 P-50ESect-14.3 P-51ESect-14.3 P-52ESect-14.3 P-53ESect-14.3 P-54ESect-14.3 P-55ESect-14.3 P-56ESect-14.3 P-57ESect-14.3 P-58ESect-14.3 P-59ESect-14.3 P-60ESect-14.3 P-61ESect-14.3 P-62ESect-14.3 P-63ESect-14.3 P-64ESect-14.3 P-65ESect-14.3 P-66ESect-14.3 P-67ESect-14.3 P-68ESect-14.3 P-69ESect-14.3 P-70ESect-14.3 P-71ESect-14.3 P-72ESect-14.3 P-73ESect-14.3 P-74ESect-14.3 P-75ESect-14.3 P-76ESect-14.3 P-77ESect-14.3 P-78ESect-14.3 P-79ESect-14.3 P-80ESect-14.3 P-81ESect-14.3 P-82ESect-14.3 P-83ESect-14.3 P-84ESect-14.3 P-85ESect-14.3 P-86ESect-14.3 P-87ESect-14.3 P-88ESect-14.3 P-89ESect-14.3 P-90ESect-14.3 P-91ESect-14.3 P-92ESect-14.3 P-93ESect-14.3 P-94ESect-14.3 P-95ESect-14.3 P-96ESect-14.3 P-97ESect-14.3 P-98ESect-14.3 P-99ESect-14.3 P-100ESect-14.3 P-101ESect-14.3 P-102ESect-14.3 P-103ESect-14.3 P-104ESect-14.4 P-1ESect-14.4 P-2ESect-14.4 P-3ESect-14.4 P-4ESect-14.4 P-5ESect-14.4 P-6ESect-14.4 P-7ESect-14.4 P-8ESect-14.4 P-11ESect-14.4 P-12ESect-14.4 P-13ESect-14.4 P-14ESect-14.4 P-15ESect-14.4 P-16ESect-14.4 P-17ESect-14.4 P-18ESect-14.4 P-19ESect-14.4 P-20ESect-14.4 P-21ESect-14.4 P-22ESect-14.4 P-23ESect-14.4 P-24ESect-14.4 P-25ESect-14.4 P-26ESect-14.4 P-27ESect-14.4 P-28ESect-14.4 P-29ESect-14.4 P-30ESect-14.4 P-31ESect-14.4 P-32ESect-14.4 P-33ESect-14.4 P-34ESect-14.4 P-35ESect-14.4 P-36ESect-14.4 P-37ESect-14.4 P-38ESect-14.4 P-39ESect-14.4 P-40ESect-14.4 P-41ESect-14.4 P-42ESect-14.4 P-43ESect-14.4 P-44ESect-14.4 P-45ESect-14.4 P-46ESect-14.5 P-1ESect-14.5 P-2ESect-14.5 P-3ESect-14.5 P-4ESect-14.5 P-5ESect-14.5 P-6ESect-14.5 P-7ESect-14.5 P-8ESect-14.5 P-9ESect-14.5 P-10ESect-14.5 P-11ESect-14.5 P-12ESect-14.5 P-13ESect-14.5 P-14ESect-14.5 P-15ESect-14.5 P-16ESect-14.5 P-17ESect-14.5 P-18ESect-14.5 P-19ESect-14.5 P-20ESect-14.5 P-21ESect-14.5 P-22ESect-14.5 P-23ESect-14.5 P-24ESect-14.5 P-25ESect-14.5 P-26ESect-14.5 P-27ESect-14.5 P-28ESect-14.5 P-29ESect-14.5 P-30ESect-14.5 P-31ESect-14.5 P-32ESect-14.5 P-33ESect-14.5 P-34ESect-14.5 P-35ESect-14.5 P-36ESect-14.5 P-37ESect-14.5 P-38ESect-14.5 P-39ESect-14.5 P-40ESect-14.5 P-41ESect-14.5 P-42ESect-14.5 P-43ESect-14.5 P-44ESect-14.5 P-45ESect-14.5 P-46ESect-14.5 P-47ESect-14.5 P-48ESect-14.5 P-49ESect-14.5 P-50ESect-14.5 P-51ESect-14.5 P-53ESect-14.5 P-55ESect-14.5 P-56ESect-14.5 P-57ESect-14.5 P-58ESect-14.5 P-59ESect-14.6 P-1ESect-14.6 P-2ESect-14.6 P-3ESect-14.6 P-4ESect-14.6 P-5ESect-14.6 P-6ESect-14.6 P-7ESect-14.6 P-8ESect-14.6 P-9ESect-14.6 P-10ESect-14.6 P-11ESect-14.6 P-12ESect-14.6 P-13ESect-14.6 P-14ESect-14.6 P-15ESect-14.6 P-16ESect-14.6 P-17ESect-14.6 P-18ESect-14.6 P-19ESect-14.6 P-20ESect-14.6 P-21ESect-14.6 P-22ESect-14.6 P-23ESect-14.6 P-24ESect-14.6 P-25ESect-14.6 P-26ESect-14.6 P-27ESect-14.6 P-28ESect-14.6 P-29ESect-14.6 P-30ESect-14.6 P-31ESect-14.6 P-32ESect-14.6 P-33ESect-14.6 P-34ESect-14.6 P-35ESect-14.6 P-36ESect-14.6 P-37ESect-14.6 P-38ESect-14.6 P-39ESect-14.6 P-40ESect-14.6 P-41ESect-14.6 P-42ESect-14.6 P-43ESect-14.6 P-44ESect-14.6 P-45ESect-14.6 P-46ESect-14.6 P-47ESect-14.6 P-48ESect-14.6 P-49ESect-14.6 P-50ESect-14.6 P-51ESect-14.6 P-52ESect-14.6 P-53ESect-14.6 P-54ESect-14.6 P-55ESect-14.6 P-56ESect-14.6 P-57ESect-14.6 P-58ESect-14.6 P-59ESect-14.6 P-60ESect-14.6 P-61ESect-14.6 P-62ESect-14.6 P-63ESect-14.6 P-64ESect-14.6 P-65ESect-14.6 P-66ESect-14.6 P-67ESect-14.6 P-68ESect-14.6 P-69ESect-14.6 P-70ESect-14.7 P-1ESect-14.7 P-2ESect-14.7 P-3ESect-14.7 P-4ESect-14.7 P-5ESect-14.7 P-6ESect-14.7 P-7ESect-14.7 P-8ESect-14.7 P-9ESect-14.7 P-10ESect-14.7 P-11ESect-14.7 P-12ESect-14.7 P-13ESect-14.7 P-14ESect-14.7 P-15ESect-14.7 P-16ESect-14.7 P-17ESect-14.7 P-18ESect-14.7 P-19ESect-14.7 P-20ESect-14.7 P-21ESect-14.7 P-22ESect-14.7 P-23ESect-14.7 P-24ESect-14.7 P-25ESect-14.7 P-26ESect-14.7 P-27ESect-14.7 P-28ESect-14.7 P-29ESect-14.7 P-30ESect-14.7 P-31ESect-14.7 P-32ESect-14.7 P-33ESect-14.7 P-34ESect-14.7 P-35ESect-14.7 P-36ESect-14.7 P-37ESect-14.7 P-38ESect-14.7 P-39ESect-14.7 P-40ESect-14.7 P-41ESect-14.7 P-42ESect-14.7 P-43ESect-14.7 P-44ESect-14.7 P-45ESect-14.7 P-46ESect-14.7 P-47ESect-14.7 P-48ESect-14.7 P-49ESect-14.7 P-50ESect-14.7 P-51ESect-14.7 P-52ESect-14.7 P-53ESect-14.7 P-54ESect-14.7 P-55ESect-14.7 P-56ESect-14.7 P-57ESect-14.7 P-58ESect-14.7 P-59ESect-14.7 P-60ESect-14.8 P-1ESect-14.8 P-2ESect-14.8 P-3ESect-14.8 P-4ESect-14.8 P-5ESect-14.8 P-6ESect-14.8 P-7ESect-14.8 P-8ESect-14.8 P-9ESect-14.8 P-10ESect-14.8 P-11ESect-14.8 P-12ESect-14.8 P-13ESect-14.8 P-14ESect-14.8 P-15ESect-14.8 P-16ESect-14.8 P-17ESect-14.8 P-18ESect-14.8 P-19ESect-14.8 P-20ESect-14.8 P-21ESect-14.8 P-22ESect-14.8 P-23ESect-14.8 P-24ESect-14.8 P-25ESect-14.8 P-27ESect-14.8 P-28ESect-14.8 P-29ESect-14.8 P-30ESect-14.8 P-31ESect-14.8 P-32ESect-14.8 P-33ESect-14.8 P-34ESect-14.8 P-35ESect-14.8 P-36ESect-14.8 P-37ESect-14.8 P-38ESect-14.8 P-39ESect-14.8 P-40ESect-14.8 P-41ESect-14.8 P-42ESect-14.8 P-43ESect-14.8 P-44ESect-14.8 P-45ESect-14.8 P-46ESect-14.8 P-49ESect-14.8 P-50ECh-14 P-1RCCCh-14 P-2RCCCh-14 P-3RCCCh-14 P-4RCCCh-14 P-5RCCCh-14 P-6RCCCh-14 P-7RCCCh-14 P-8RCCCh-14 P-9RCCCh-14 P-10RCCCh-14 P-11RCCCh-14 P-12RCCCh-14 P-13RCCCh-14 P-14RCCCh-14 P-15RCCCh-14 P-16RCCCh-14 P-17RCCCh-14 P-18RCCCh-14 P-19RCCCh-14 P-1RQCh-14 P-2RQCh-14 P-3RQCh-14 P-4RQCh-14 P-5RQCh-14 P-6RQCh-14 P-7RQCh-14 P-8RQCh-14 P-9RQCh-14 P-10RQCh-14 P-11RQCh-14 P-12RQCh-14 P-1RECh-14 P-2RECh-14 P-3RECh-14 P-4RECh-14 P-5RECh-14 P-6RECh-14 P-7RECh-14 P-8RECh-14 P-9RECh-14 P-10RECh-14 P-11RECh-14 P-12RECh-14 P-13RECh-14 P-14RECh-14 P-15RECh-14 P-16RECh-14 P-17RECh-14 P-18RECh-14 P-19RECh-14 P-20RECh-14 P-21RECh-14 P-22RECh-14 P-23RECh-14 P-24RECh-14 P-25RECh-14 P-26RECh-14 P-27RECh-14 P-28RECh-14 P-29RECh-14 P-30RECh-14 P-31RECh-14 P-32RECh-14 P-33RECh-14 P-34RECh-14 P-35RECh-14 P-36RECh-14 P-37RECh-14 P-38RECh-14 P-39RECh-14 P-40RECh-14 P-41RECh-14 P-42RECh-14 P-43RECh-14 P-44RECh-14 P-45RECh-14 P-46RECh-14 P-47RECh-14 P-48RECh-14 P-49RECh-14 P-50RECh-14 P-51RECh-14 P-52RECh-14 P-53RECh-14 P-54RECh-14 P-55RECh-14 P-56RECh-14 P-57RECh-14 P-58RECh-14 P-59RECh-14 P-60RECh-14 P-61RECh-14 P-62RECh-14 P-63RECh-14 P-64RECh-14 P-65RECh-14 P-1PCh-14 P-2PCh-14 P-3PCh-14 P-4PCh-14 P-5PCh-14 P-6PCh-14 P-7PCh-14 P-8P

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