Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 22L0.4K0.6 Furthermore, the cost function for a facility is given by the function: C(L, K) = 500L + 200K Suppose the monthly production goal of this facility is to produce 6,000 items. In this problem, we will assume L represents units of labor invested and K represents units of capital invested, and that you can invest in tenths of units for each of these. What allocation of labor and capital will minimize total production Costs? Units of Labor L = (Show your answer is exactly 1 decimal place) Units of Capital K = (Show your answer is exactly 1 decimal place) Also, what is the minimal cost to produce 6,000 units? (Use your rounded values for L and K from above to answer this question.) The minimal cost to produce 6,000 units is $

Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 22L0.4K0.6 Furthermore, the cost function for a facility is given by the function: C(L, K) = 500L + 200K Suppose the monthly production goal of this facility is to produce 6,000 items. In this problem, we will assume L represents units of labor invested and K represents units of capital invested, and that you can invest in tenths of units for each of these. What allocation of labor and capital will minimize total production Costs? Units of Labor L = (Show your answer is exactly 1 decimal place) Units of Capital K = (Show your answer is exactly 1 decimal place) Also, what is the minimal cost to produce 6,000 units? (Use your rounded values for L and K from above to answer this question.) The minimal cost to produce 6,000 units is $

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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