Question: Your automobile assembly plant has a Cobb-Douglas production function given by q = x 0.4 y 0.6 , where q is the number of automobiles
Your automobile assembly plant has a Cobb-Douglas production function given by
q=x0.4y0.6,
whereqis the number of automobiles it produces per year,xis the number of employees, andyis the daily operating budget (in dollars). Annual operating costs amount to an average of$21,000per employee plus the operating budget of $365y. Assume that you wish to produce5,000automobiles per year at a minimum cost. How many employees should you hire? HINT [See Example 5.] (Round your answer to the nearest employee.)
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