Chapter 14.5, Problem 20E

(a)

To determine

To calculate: The number of units of labor and the number of units of capital that maximize production. If a company has the Cobb-Douglas production function $z=100x^{0.75}{y}^{0.25}$.

(b)

To determine

To calculate: The marginal productivity of money If a company has the Cobb-Douglas production function $z=100x^{0.75}{y}^{0.25}$.

(c)

To determine

To graph: The constraint with the optimal value for production and with two other z-values (one smaller than the optimal value and one larger.) If a company has the Cobb-Douglas production function $z=100x^{0.75}{y}^{0.25}$.