Question

The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 30x0.2y0.8...

The automobile assembly plant you manage has a Cobb-Douglas production function given by

P = 30x0.2y0.8

where P is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Assume that you maintain a constant work force of 200 workers and wish to increase production in order to meet a demand that is increasing by 60 automobiles per year. The current demand is 800 automobiles per year. How fast should your daily operating budget be increasing? HINT [See Example 4.] (Round your answer to the nearest cent.)

Math   Calculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 10x^0.2y^0.8...
The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 10x^0.2y^0.8 where P is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Assume that you maintain a constant work force of 140 workers and wish to increase production in order to meet a demand that is increasing by 70 automobiles per year. The current demand is 800 automobiles per year....
The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 10x^0.3y^0.7...
The automobile assembly plant you manage has a Cobb-Douglas production function given by P = 10x^0.3y^0.7 where P is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). You maintain a production level of 3,500 cars per year. If you currently employ 100 workers and are hiring new workers at a rate of 10 per year, How fast is your daily operating budget changing? Round your...
Your automobile assembly plant has a Cobb-Douglas production function given by q = 100x0.3y0.7, where q...
Your automobile assembly plant has a Cobb-Douglas production function given by q = 100x0.3y0.7, where q is the number of automobiles it produces per year, x is the number of employees, and y is the monthly assembly-line budget (in thousands of dollars). Annual operating costs amount to an average of $60 thousand per employee plus the operating budget of $12y thousand. Your annual budget is $1,200,000. How many employees should you hire and what should your assembly-line budget be to...
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This...
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following: a. The production function in Equation 6.7 is a special case of the Cobb-Douglas. b. If a+b=1, a doubling of K and L will double q. c. If a +b < 1, a doubling of K and L will less than double q. d. If a +b > 1, a doubling...
Suppose a Cobb-Douglas Production function is given by the following: P(L,K)=10L0.9K0.1 where L is units of...
Suppose a Cobb-Douglas Production function is given by the following: P(L,K)=10L0.9K0.1 where L is units of labor, K is units of capital, and P(L,K)P(L,K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $400 and each unit of capital costs $1,200. Further suppose a total of $600,000 is available to be invested in labor and capital (combined). A) How many units of labor and capital should be "purchased" to maximize production subject...
Suppose a Cobb-Douglas Production function is given by the following: P(L, K) = (50L^(0.5))(K^(0.5)) where L...
Suppose a Cobb-Douglas Production function is given by the following: P(L, K) = (50L^(0.5))(K^(0.5)) where L is units of labor, K is units of capital, and P(L, K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $300 and each unit of capital costs $1,500. Further suppose a total of $90,000 is available to be invested in labor and capital (combined). A) How many units of labor and capital should be "purchased"...
3. The White Noise Corporation has estimated the following Cobb-Douglas production function using monthly observations for...
3. The White Noise Corporation has estimated the following Cobb-Douglas production function using monthly observations for the past two years: ln Q = 2.485 + 0.50 ln K + 0.50 ln L + 0.20 ln N where Q is the number of units of output, K is the number of units of capital, L is the number of unit of labor, and N is the number of units of raw materials. With respect to the above results, answer the following...
A closed economy has the following Cobb-Douglas production function: F(KL) = K2/5 (EL)3/5, where the notation...
A closed economy has the following Cobb-Douglas production function: F(KL) = K2/5 (EL)3/5, where the notation is as in class. The depreciation rate is 1.5% and the saving rate is 20%. The economy is in steady state, where the population decreases at a rate 1% and capital K increases at a rate 1%. (a) Find the growth rates of the following variables (i) labor efficiency, E (ii) the number of workers per machine, L/K (iii) the average productivity of capital,...
How can differential analysis be applied here to determine if it would be profitable to invest...
How can differential analysis be applied here to determine if it would be profitable to invest in new equipment to increase capacity for a constrained resource? KRAYDEN’S CYCLE COMPONENTS INTRODUCTION: COMPANY, PRODUCT, AND SUPPLY CHAIN Krayden’s Cycle Components (KCC) is a high-end specialty fabricator that manufactures one product with many variants. The basic product is known as a rolling chassis, a key component used in manufacturing motorcycles. While there are variations across the industry, a rolling chassis typically consists of...
provide 3-4 paragraphs post (team 2) 1-What are 4 key things you learned about the topic...
provide 3-4 paragraphs post (team 2) 1-What are 4 key things you learned about the topic from reading their paper? 2-How does the topic relate to you and your current or past job? 3-Critique the paper in terms of the organization and quality.1- Employee Stress and how it has an Adverse Effect on a Company This paper explores employee stress and how it has an adverse effect on a company, its employees and the organization. Job stress can have a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT