Question: Your automobile assembly plant has a Cobb-Douglas production function given by q = 40.440.6, where q is the number of automobiles it produces per year,

Your automobile assembly plant has a Cobb-Douglas production function given by q = 40.440.6, where q is the number of automobiles it produces per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $27,000 per employee plus the operating budget of $365y. Assume that you wish to produce 5,000 automobiles per year at a minimum cost. How many employees should you hire? HINT (See Example 5.] (Round your answer to the nearest employee.) employees
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
