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2) A production function for a business follows the model P(L, K) = 0.1 L0.4K0.6 over the course of one year, where P represents the total value of all products the company makes, L represents the value of the labor from employees, and K represents the value of all the company's assets (buildings, machines, etc.), where everything is measured in millions of dollars. ӘР ӘР a. Find and and explain what they represent in this context. ƏL ак' b. Evaluate the partial derivatives from part a when (L, K) = (3,4). If this was your business and your values, if you wanted to expand would it be better to expand in workforce (increase L) or expand in assets (increase K)?

2) A production function for a business follows the model P(L, K) = 0.1 L0.4K0.6 over the course of one year, where P represents the total value of all products the company makes, L represents the value of the labor from employees, and K represents the value of all the company's assets (buildings, machines, etc.), where everything is measured in millions of dollars. ӘР ӘР a. Find and and explain what they represent in this context. ƏL ак' b. Evaluate the partial derivatives from part a when (L, K) = (3,4). If this was your business and your values, if you wanted to expand would it be better to expand in workforce (increase L) or expand in assets (increase K)?

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 52E
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2) A production function for a business follows the model P(L, K) = 0.1 L0.4K0.6 over the course of one year, where P represents the total value of all products the company makes, L represents the value of the labor from employees, and K represents the value of all the company's assets (buildings, machines, etc.), where everything is measured in millions of dollars. ap a. Find and ƏL ap ак' , and explain what they represent in this context. b. Evaluate the partial derivatives from part a when (L, K) = (3,4). If this was your business and your values, if you wanted to expand would it be better to expand in workforce (increase L) or expand in assets (increase K)?
Transcribed Image Text:2) A production function for a business follows the model P(L, K) = 0.1 L0.4K0.6 over the course of one year, where P represents the total value of all products the company makes, L represents the value of the labor from employees, and K represents the value of all the company's assets (buildings, machines, etc.), where everything is measured in millions of dollars. ap a. Find and ƏL ap ак' , and explain what they represent in this context. b. Evaluate the partial derivatives from part a when (L, K) = (3,4). If this was your business and your values, if you wanted to expand would it be better to expand in workforce (increase L) or expand in assets (increase K)?
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