Cobb-Douglas Productivity Functions Have the Form $p ( x , y ) = k x ^ { a } y ^ { 1 - a }$

question 58

Short Answer

Cobb-Douglas productivity functions have the form
$p ( x , y ) = k x ^ { a } y ^ { 1 - a }$
where P stands for the number of items produced per year, x is the number of employees, and y is the annual operating budget. The numbers k and a are constants that depend on the situation we are looking at, with $0 \leq a \leq 1$ .

How many items will be produced per year by a company that has 250 employees and an annual operating budget of $100,000 if $k = 1,000$ and $a = 0.5$ (Round your answer to one significant digit.)

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