Question: Suppose that the production function for a company is given by Q = 80K 1/4 L3/4 where Q is the output (in hundreds of units),

Suppose that the production function for a company is given by Q = 80K 1/4 L3/4 where Q is the output (in hundreds of units), K is the capital expenditures (in thousands of dollars), and L is the work-hours. Find ∂Q/∂K and ∂Q/∂L when expenditures are $625,000 and total work-hours are 4096. Interpret the results.

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Q 80K 14 L 34 K 625 L4096 For the given values QK 8192 and QL 375 h... View full answer

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