For a company that produces respirators, the Cobb-Douglas function is given f(x,y)=120x^(1⁄3) y^(2⁄3) Where "x" represents...

For a company that produces respirators, the Cobb-Douglas function is given f(x,y)=120x^(1⁄3) y^(2⁄3) Where "x" represents labor units ($100 per unit) and "y" represents capital units ($150 per unit). Total labor and capital costs are limited to $70,000.

A) When does the maximum production level occur?

B) What is the maximum production level of masks?

C) Find the marginal capital productivity and interpret the answer

Expert Solution

milcah answered 2 years ago

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