Question: The Cobb-Douglas production function is a classic model from economics used to model output as a function of capital and labor. It has the form:

The Cobb-Douglas production function is a classic
The Cobb-Douglas production function is a classic model from economics used to model output as a function of capital and labor. It has the form: ALC) - COLCC where co, ci, and c2 are constants. The variable represents the units of input of labor, and the variable C represents the units of input of capital. In this example, assume co - 5,01 -0.25, and c2 -0.75. Assume each unit of labor costs $25 and each unit of capital costs $75. With $75,000 available in the budget develop an optimization model to determine how the budgeted amount should be allocated between capital and labor in order to maximize output. f(L,C) - 20 70 70000 Find the optimal solution to the model you formulated. (Hint: When using Excel Solver, use bounds OSLS 3,000 and 0 SC S 1,000.) Round your answers to the nearest whole number, if necessary Input Labor Amount 938 304 units 3 units Capital Output Amount 4176 units

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