A manufacturer estimates the Cobb-Douglas production function to be given by $f ( x , y ) = 100 x ^ { 0.75 } y ^ { 0.25 }$ . Estimate the production levels when $x = 1500$ and $y = 1000$ .
A)135,540 units
B)122,560 units
C)131,601 units
D)145,330 units
E)112,745 units

Question

Quizplus · Accepted Answer

The correct answer is A because $f ( x , y ) = 100 x ^ { 0.75 } y ^ { 0.25 }$ $f ( 1500 , 1000 ) = 100 ( 1500 ) ^ { 0.75 } ( 1000 ) ^ { 0.25 }$ $= 100 ( 1500 ) ^ { 0.75 } ( 1000 ) ^ { 0.25 }$ $= 100 ( 38.73 ) ( 31.62 )$ $= 122,560$ units

A Manufacturer Estimates the Cobb-Douglas Production Function to Be Given f(x,y)=100x0.75y0.25f ( x , y ) = 100 x ^ { 0.75 } y ^ { 0.25 }f(x,y)=100x0.75y0.25

A Manufacturer Estimates the Cobb-Douglas Production Function to Be Given $f ( x , y ) = 100 x ^ { 0.75 } y ^ { 0.25 }$