Question

8. 0.6/4 points | Previcus Answers My Notes This is Section 6.1 A company that produces skis has the Cobb Douglas production function Q=/(x,y)-180x0.,0.3 , where Q is the number of pairs of skis produced per month, x is the number of thousands of labor hours per month and y is the value of the equipment in units of thousands of dollars. The company currently has a labor force of 3,000 labor hours per month and $50,000 of capital skis produced per month. (Round to an integer.) (a) The current production level is (b) The current marginal productivity of labor is (Round to an integer.). This number means that, when the company has a labor force of hours and per month and has $worth of equipment, if the labor hours increase by 1,000 hours per month, and the value of equipment remains $ then the production Increasesby approximately pairs of skis produced per month (c) The current marginal productivity of capital is and per month and has $ thousand dollars, then the production increases by approximately (Round to an integer.). This number means that, when the company has a labor force of hours worth of equipment, if the labor hours remains at hours per month and the value of the equipment increases by one pairs of skis produced per month. Hint: Follow Example 5

Answer 1

Productch function 3-fcx,y)-180亠07 y 0.3 (chara & ustha number of him of skus brzucd per month , x us the number e theubands g labor hourh per morth and y is tha vals g equib rment in unit of thousard dolara Tha company curmenty hen aabor for 3,cco labor heurn bex month and $o.os a copite a) Tho curnent puductin tevel1256 skis pxauad per maatt -0.3 x = 180 (0 ) (3.so)1 ( (o31.535 2 rgind ooductivrly %f labor [233] . Thus roduct V (b) ha current ma means that, Lshan the CEmtant has a Vaber tearce of 3060] heur and per morth aod ha so.cool worth afequipment, i the laber houra incneave b ,ooo haurn ber menth, and tha valia afequpmont se nains串[S o ], than the bo ludin increase y qbbnxínita 235l pairs af Akis praucad ber month Tho current mara mani that, ushan tho campany has a abor-fexo of T8essl heuor and ber moith nd has 500001 worth 삭 equipmats , if tto labor hour remain at 3000 hourn ber mont and tha valua tha eguilp mont unercades b sna theusand lellars , then skin brodu od per moth