The Cobb-Douglas production function for a particular product is N(x,y)=80x64, where 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 $100. Answer the questions (A) and (B) below. (A) If $500,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital. The maximum production is units. (Round to the nearest integer as needed.) (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. The marginal productivity of money is (Round to four decimal places as needed.) The increase in production is units. (Round to the nearest unit as needed.)

The Cobb-Douglas production function for a particular product is N(x,y)=80x64, where 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 $100. Answer the questions (A) and (B) below. (A) If $500,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital. The maximum production is units. (Round to the nearest integer as needed.) (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. The marginal productivity of money is (Round to four decimal places as needed.) The increase in production is units. (Round to the nearest unit as needed.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Define Entitlements.
What are the Annual benefits?
How should salespeople and their tasks be structured?
Write any two precautions of income method
Can you please directly answer the questions asked?
write a conclusion of the effectiveness of Human resources management and its importance on the economy and organizations.
Evaluate the impact of age, and geographic location on personal income.
How did you get the formula for letter B?
help
What is the Times-Interest-Earned Ratio?
Personal income includes income received in the form of transfer payments True False
What type of social research methodology would you use to study the relationship between income and health and why?