Question: Can someone please help me with the stuff I got wrong Question 12 of 16 0.57 / 1 i View Policies Show Attempt History Current

 Can someone please help me with the stuff I got wrong

Can someone please help me with the stuff I got wrong

Question 12 of 16 0.57 / 1 i View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. The quantity, Q, of a product manufactured by a company is given by Q = ak0.620.4 where a is a positive constant, K is the quantity of capital and L is the quantity of labor used. Capital costs are $22 per unit, labor costs are $11 per unit, and the company wants costs for capital and labor combined to be no higher than $198. Suppose you are asked to consult for the company, and learn that 6 units each of capital and labor are being used. (a) What do you advise? Should the company use more or less labor? More or less capital? If so, by how much? Enter the exact answers. The company should increase labor by 6 unit(s) and reduce capital by 3 unit(s). (b) Complete the sentence below to sell your advice to the board of directors. Round your answer to two decimal places. Reducing the quantity of capital and increasing the quantity of labor will increase production by i 11 % while holding costs to $198. Question 12 of 16 0.57 / 1 i View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. The quantity, Q, of a product manufactured by a company is given by Q = ak0.620.4 where a is a positive constant, K is the quantity of capital and L is the quantity of labor used. Capital costs are $22 per unit, labor costs are $11 per unit, and the company wants costs for capital and labor combined to be no higher than $198. Suppose you are asked to consult for the company, and learn that 6 units each of capital and labor are being used. (a) What do you advise? Should the company use more or less labor? More or less capital? If so, by how much? Enter the exact answers. The company should increase labor by 6 unit(s) and reduce capital by 3 unit(s). (b) Complete the sentence below to sell your advice to the board of directors. Round your answer to two decimal places. Reducing the quantity of capital and increasing the quantity of labor will increase production by i 11 % while holding costs to $198

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!