At a certain factory, the daily output is Q(K, L) = 60K 1/2 L 1/3 units, where
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At a certain factory, the daily output is Q(K, L) = 60K1/2L1/3 units, where K denotes the capital investment measured in units of $1,000 and L the size of the labor force measured in worker-hours. Suppose that the current capital investment is $900,000 and that 1,000 worker-hours of labor are used each day. Use marginal analysis to estimate the effect of an additional capital investment of $1,000 on the daily output if the size of the labor force is not changed.
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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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