Solve the problem.
-The Cobb-Douglas production function for a steel company is given by f(x, y) = 78x0.3y0.7 where x is the utilization of labor and y is the utilization of capital. If the company uses 1500 units of labor and 2200 units of
Capital, how many units of steel will be produced? Round to the nearest whole unit.
A) 5,405,400,000 units
B) 656,640 units
C) 54,054,000 units
D) 152,974 units

Question

Quizplus · Accepted Answer

To find the number of units of steel produced, substitute the given values of labor (x = 1500) and capital (y = 2200) into the Cobb-Douglas production function: f(x, y) = 78x^0.3y^0.7. This gives f(1500, 2200) = 78 * 1500^0.3 * 2200^0.7. Calculating this yields approximately 152,974 units (rounded to the nearest whole unit).

Solve the Problem. -The Cobb-Douglas Production Function for a Steel Company Is Given