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Find the amount of capital (K) and labour (L) that should be employed to maximize output (q) given the following Cobb-Douglas production functions and constraints set by Pk, PL and budget B: q(K,L) = K°ªL°6 Pg = 8,P, = 6,B = 300

Find the amount of capital (K) and labour (L) that should be employed to maximize output (q) given the following Cobb-Douglas production functions and constraints set by Pk, PL and budget B: q(K,L) = K°ªL°6 Pg = 8,P, = 6,B = 300

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Find the amount of capital (K) and labour (L) that should be employed to maximize output (q) given the following Cobb-Douglas production functions and constraints set by Pk, PL and budget B: q(K,L) = K°ªL°6 PK = 8, P, = 6, B = 300 (You MUST justify that the stationary point you found does indeed maximize the given function).
Transcribed Image Text:Find the amount of capital (K) and labour (L) that should be employed to maximize output (q) given the following Cobb-Douglas production functions and constraints set by Pk, PL and budget B: q(K,L) = K°ªL°6 PK = 8, P, = 6, B = 300 (You MUST justify that the stationary point you found does indeed maximize the given function).
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