Question: Beta Inc. has two production plants that use finely divisible labor to produce its output. The production function in plant 1 is where L1 is

Beta Inc. has two production plants that use finely divisible labor to produce its output. The production function in plant 1 is

Beta Inc. has two production plants that use finely divisible

where L1 is the amount of labor assigned to plant 1 and ln(X) is the natural logarithm function.
The production function in plant 2 is

Beta Inc. has two production plants that use finely divisible

where L2 is the amount of labor assigned to plant 2. Beta Inc. wants to find the best assignment of 90 workers between the two plants. What is it?

F1(L1) 100InL1)

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