The Cobb-Douglas production function f(x, y) = 3520.30 y0.70 gives the number of face masks manufactured when z units of labor and y units of capital is utilized. Assuming the company is currently utilizing 100 units of labor and 200 units of capital, which of the following statements can be deduced?
The Cobb-Douglas production function f(x, y) = 3520.30 y0.70 gives the number of face masks manufactured when z units of labor and y units of capital is utilized. Assuming the company is currently utilizing 100 units of labor and 200 units of capital, which of the following statements can be deduced?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.7P
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Choices are on the second pic
![The Cobb-Douglas production function f(x, y)
35x0.30 ,0.70
gives the number of face masks manufactured when æ units of labor
and y units of capital is utilized.
Assuming the company is currently utilizing 100 units of labor and
200 units of capital, which of the following statements can be deduced?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe993c16a-4f87-4816-b469-53766dcf6e87%2Fec3f9c62-8214-48cf-b3c6-037c858d0636%2Fr9ukpra_processed.png&w=3840&q=75)
Transcribed Image Text:The Cobb-Douglas production function f(x, y)
35x0.30 ,0.70
gives the number of face masks manufactured when æ units of labor
and y units of capital is utilized.
Assuming the company is currently utilizing 100 units of labor and
200 units of capital, which of the following statements can be deduced?
![For every unit increased in labor, the change in productivity will increase by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in labor, the change in productivity will decrease by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in capital, the change in productivity will increase by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in capital, the change in productivity will decrease by approximately
f,(100, 200) z 19.90 units of face masks.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe993c16a-4f87-4816-b469-53766dcf6e87%2Fec3f9c62-8214-48cf-b3c6-037c858d0636%2Ftp17lnq_processed.png&w=3840&q=75)
Transcribed Image Text:For every unit increased in labor, the change in productivity will increase by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in labor, the change in productivity will decrease by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in capital, the change in productivity will increase by approximately
f,(100, 200) z 19.90 units of face masks.
For every unit increased in capital, the change in productivity will decrease by approximately
f,(100, 200) z 19.90 units of face masks.
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