Matthew manages a company that produces Q = 3,000K 1/2 L 1/3 units per day, where K
Question:
Matthew manages a company that produces Q = 3,000K1/2L1/3 units per day, where K is the capital investment in thousands of dollars and L is the size of the labor force measured in worker-hours. Currently, the capital investment is $400,000 (K = 400) and the labor force is 1,331 worker-hours per day. Matthew is trying to decide whether increasing capital expenditure by $10,000 or increasing the labor force by 10 worker-hours will produce the greatest increase in daily output. Use marginal analysis to help him make his decision.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
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
Question Posted: