Let S represent the amount of steel produced (in tons). Steel production is related to the amount

Question:

Let S represent the amount of steel produced (in tons). Steel production is related to the amount of labor used (L) and the amount of capital used (C) by the following function:
S = 20 L0.30 C 0.70
In this formula L represents the units of labor input and C the units of capital input. Each unit of labor costs $50, and each unit of capital costs $100.
a. Formulate an optimization problem that will determine how much labor and capital are needed to produce 50,000 tons of steel at minimum cost.
b. Solve the optimization problem you formulated in part a.
Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Essentials of Business Analytics

ISBN: 978-1285187273

1st edition

Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams

Question Posted: