3. A company manufactures a product which requires capital and labor to produce. The quantity, Q, of the product manufactured is given as a function Q = F(K, L) where K is the quantity of capital and L is the quantity of labor used. One unit of capital costs $4 in ten thousands and one unit of labor costs $2 in thousands. The price of the product is fixed at $6 per unit. (a) Suppose the following Cobb-Douglas production function is used Q = F(K, L) = 2K²/³L²/3¸ %D How much capital and labor should the company use to maximize its profit? (b) Investigate the same problem as in (a) with Q = F(K, I) = 2K1/312/3
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
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