The Cobb-Douglas production function for a company is given by P(k,l)= 70

where P is the monthly production value when k is the number of units of capital and l is the number of units of labor.Suppose that capital costs $450 per unit,labor costs $75 per unit,and the total cost of capital and labor is limited to $60,000.Use Lagrange multipliers to write the system of equations you would use to find the number of units of capital and labor that maximize production.

Question

The Cobb-Douglas production function for a company is given by P(k,l)= 70  
  
where P is the monthly production value when k is the number of units of capital and l is the number of units of labor.Suppose that capital costs $450 per unit,labor costs $75 per unit,and the total cost of capital and labor is limited to $60,000.Use Lagrange multipliers to write the system of equations you would use to find the number of units of capital and labor that maximize production.

Quizplus · Accepted Answer

The Answer of The Cobb-Douglas production function for a company is given by P(k,l)= 70  
  
where P is the monthly production value when k is the number of units of capital and l is the number of units of labor.Suppose that capital costs $450 per unit,labor costs $75 per unit,and the total cost of capital and labor is limited to $60,000.Use Lagrange multipliers to write the system of equations you would use to find the number of units of capital and labor that maximize production.

The Cobb-Douglas Production Function for a Company Is Given by P(k,l)=