Question: 15. The Cobb-Douglas production function for a product is P : 5L0.8K0.2 where P is the quantity produced, L is the size of the labor

15. The Cobb-Douglas production function for a product is P : 5L0.8K0.2 where P is the quantity produced, L is the size of the labor force, and K is the amount of total equipment. Each unit of labor costs $300, each unit of equipment costs $100, and the total budget is $15,000. (a) Make a table of L and K values which exhaust the budget. Find the production level, P, for each. (b) Use the method of Lagrange multipliers to nd the optimal way to spend the budget
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