Question

I am not sure how to solve it.

The production of a manufacturer is given by the Cobb-Douglas production function

f(x,y)=30x^(3/5)y^(2/5)

where x represents the number of units of labor (in hours) and y represents the number of units of capital (in dollars) invested. Labor costs $15 per hour and there are 88 hours in a working day, and 250 working days in a year. The manufacturer has allocated $4,500,000 this year for labor and capital. How should the money be allocated to labor and capital to maximize productivity this year? Round answers to 2 decimal places, if necessary.

To maximize productivity, they should spend their money on ? hours of labor and invest $?. This leads to a maximum value of  units. Also, if the number of dollars allocated to labor and capital is increased by 11, the number of units produced will (Select an answer) decrease increase  by approximately? .

Answer 1