Question

A manufacturer has modeled its yearly production function $ P $ (the monetary value of its entire production in millions of dollars) as a Cobb-Douglas function $$ P(L, K) = 1.47L^{0.65}K^{0.35} $$ where $ L $ is the number of labor hours (in thousands) and $ K $ is the invested capital (in millions of dollars). Find $ P(120, 20) $ and interpret it.

Name: Problem 3, Chapter 14: Calculus: Early Transcendentals
Uploaded: 2020-12-21T17:35:41-08:00
Duration: 1 min 52 s
Channel: Carson Merrill
Description: A manufacturer has modeled its yearly production function P (the monetary value of its entire production in millions of dollars) as a Cobb-Douglas function P(L, K) = 1.47L^0.65K^0.35 where L is the number of labor hours (in thousands) and K is the invested capital (in millions of dollars). Find P(120, 20) and interpret it.

   A manufacturer has modeled its yearly production function $ P $ (the monetary value of its entire production in millions of dollars) as a Cobb-Douglas function 
$$ P(L, K) = 1.47L^{0.65}K^{0.35} $$
where $ L $ is the number of labor hours (in thousands) and $ K $ is the invested capital (in millions of dollars). Find $ P(120, 20) $ and interpret it.

Calculus: Early Transcendentals

James Stewart 8th Edition

Chapter 14, Problem 3

Instant Answer

Solved by Expert Carson Merrill

12/21/2020

Step 1

So, we have $$ P(120, 20) = 1.47(120)^{0.65}(20)^{0.35} $$ Show more…

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A manufacturer has modeled its yearly production function $ P $ (the monetary value of its entire production in millions of dollars) as a Cobb-Douglas function $$ P(L, K) = 1.47L^{0.65}K^{0.35} $$ where $ L $ is the number of labor hours (in thousands) and $ K $ is the invested capital (in millions of dollars). Find $ P(120, 20) $ and interpret it.