Production The production function for a company is given by f(x, y) = 100x 0.6 y 0.4 where x is the number of units of labor (at $48 per unit) and y is the number of units of capital (at $36 per...

Production

The production function for a company is given by

f(x, y) = 100x^0.6y^0.4

wherex is the number of units of labor (at $48 per unit) andy is the number of units of capital (at $36 per unit). The total cost for labor and capital cannot exceed $100,000.

(a)
Find the maximum production level for this manufacturer. (Round your answer to the nearest integer.)

(b)
Find the marginal productivity of money. (Round your answer to three decimal places.)

(c)
Use the marginal productivity of money to find the maximum number of units that can be produced when $125,000 is available for labor and capital.

(d)
Use the marginal productivity of money to find the maximum number of units that can be produced when $310,000 is available for labor and capital.

Jun 04, 2022

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Production The production function for a company is given by f(x, y) = 100x 0.6 y 0.4 where x is the number of units of labor (at $48 per unit) and y is the number of units of capital (at $36 per...

Production

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