Question: Suppose a Cobb-Douglas Production function is given by the following: P(L,K) = 20L ^ 0.84 * K ^ 0.16 where is units of labor, K

Suppose a Cobb-Douglas Production function is given by the following: P(L,K) = 20L ^ 0.84 * K ^ 0.16 where is units of labor, K is units of capital, and P(L,K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $ 700 and each unit of capital costs $5,600 Further suppose a total of $ 700,000 is available to be invested in labor and capital (combined) . A ) How many units of labor and capital should be purchasedto maximize production subject to your budgetary constraint ? Units of labor, = Units of capital , K = ) What is the maximum number of units of production under the given budgetary conditions ? ( Round your answer to the nearest whole unit. ) units Max production =

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