The automobile assembly plant you manage has a Cobb-Douglas production function given by where P is the number of automobiles the plant produces per year, x is the number of employees, and y is the daily operating budget (in dollars). You maintain a production level of 5,000 automobiles per year. If you currently employ 150 workers and are hiring new workers at a rate of 10 per year, how fast is your daily operating budget changing?
A)-$9,663.33 per year
B)$45.10 per year
C)$64.42 per year
D)$350.74 per year
E)-$64.42 per year

Question

The automobile assembly plant you manage has a Cobb-Douglas production function given by  where P is the number of automobiles the plant produces per year, x is the number of employees, and y is the daily operating budget (in dollars). You maintain a production level of 5,000 automobiles per year. If you currently employ 150 workers and are hiring new workers at a rate of 10 per year, how fast is your daily operating budget changing?
A)-$9,663.33 per year 
B)$45.10 per year 
C)$64.42 per year 
D)$350.74 per year 
E)-$64.42 per year

Quizplus · Accepted Answer

The Answer of The automobile assembly plant you manage has a Cobb-Douglas production function given by  where P is the number of automobiles the plant produces per year, x is the number of employees, and y is the daily operating budget (in dollars). You maintain a production level of 5,000 automobiles per year. If you currently employ 150 workers and are hiring new workers at a rate of 10 per year, how fast is your daily operating budget changing?
A)-$9,663.33 per year 
B)$45.10 per year 
C)$64.42 per year 
D)$350.74 per year 
E)-$64.42 per year

The Automobile Assembly Plant You Manage Has a Cobb-Douglas Production