It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then L 2/3 K 1/3 machines can be produced. Suppose...

It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then L^2/3
K^1/3
machines can be produced. Suppose the company has $10,000 to purchase labor and capital.

a.  What is the maximum number of machines it can produce?

b.  Use SolverTable to see how a change in the price of labor changes the optimal solution.


c.  Use SolverTable to see how a change in the price of capital changes the optimal solution.

d.  Use SolverTable to see how a change in the amount of money available changes the optimal solution.