A Company Has the Cobb-Douglas Production Function , Where

question 107

Multiple Choice

A company has the Cobb-Douglas production function , where x is the number of units of labor, y is the number of units of capital, and z is the units of production. Suppose labor costs $200 per unit, capital costs $150 per unit, and the total cost of labor and capital is limited to $300,000. Find the number of units of labor and the number of units of capital that maximize production. ​

• A)1,500 units of labor; 2,000 units of capital
• B)1,200 units of labor; 2,000 units of capital
• C)1,500 units of labor; 400 units of capital
• D)1,200 units of labor; 400 units of capital
• E)12,000 units of labor; 4,000 units of capital

---

Definitions:

Cold

A common viral infection of the upper respiratory tract characterized by symptoms such as coughing, sneezing, and a runny nose.

Subliminal Messages

Messages that are sent below the threshold of conscious perception, designed to influence behavior or thought without the individual being aware of it.

Persuade

The action of convincing someone to do or believe something through reasoning or the use of temptation.

Gate-Control Theory

The theory that the experience of pain depends in part on whether pain impulses get past a neurological “gate” in the spinal cord and thus reach the brain.