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13.6.17 Question Help The Cobb-Douglas production function for a particular product is N(x,y) = 80x0.8,0.2, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. IF $1,200,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production. Production will be maximized when using units of labor and units of capital. Enter your answer in the edit fields and then click Check Answer. All parts showing Clear All Check Answer 278 15 Pew MacBook Air

Answer 1

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Soln giren 0.2 0.8 Ning) = 80 x Y (Hy 40% + 120 Y = 1200000 x+3y = 30000 0.8 N(y) = 30000 -3Y) Y yo.2 -022 Nily) 80 80 (300 •[ (3.60-3)810929 Y 50–34)*° (0.2) Y + Y074-8) (3) (30000-37) w s) = 80[(0-2)(x)*(sarvo-zvj+2 (2-1) Yºscow-30] Nils) = 80 ſ (0-2)(3000-3Y) – (2.9) Y you fosco-3Y)6-2 Nils) fool maximum (0.2) (30000-3Y) of Nl(y) Y = 30000 2000 (2.4) Y X = 2400 24000 units of laboy 2000 units of and of capital