Question

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 answer to the nearest cent.

Answer 1