Question: T he Cobb-Douglas function for a new product is given by: N (L, K) = 1.19L 0.72 K 0.18 WhereC* =Rs. 750,w = Rs. 30,

The Cobb-Douglas function for a new product is given by:

N (L, K) = 1.19L^0.72K^0.18

WhereC* =Rs. 750,w = Rs. 30, r = Rs. 40

Determine the amount of labor and capital that the firm should use in order to maximize output. What is this level of output?Also interpret the value of lagrange multiplier,

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