Productivity. A consulting firm for a manufacturing company arrived at the following Cobb-Douglas production function for a particular product:
In this equation, x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $80.
- (A) If $400,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production.
- (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product.
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- Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage