The output at a certain factory is Q(K, L) = 120K 2/3 L 1/3 units, where K
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The output at a certain factory is Q(K, L) = 120K2/3L1/3 units, where K is the capital investment measured in units of $1,000 and L the size of the labor force measured in worker-hours.
a. Compute the output if the capital investment is $125,000 and the size of the labor force is 1,331 worker-hours.
b. What will happen to the output in part (a) if both the level of capital investment and the size of the labor force are cut in half?
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Related Book For
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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