The Automobile Assembly Plant You Manage Has a Cobb-Douglas Production $P = 10 x ^ { 0.3 } y ^ { 0.7 }$

question 58

Multiple Choice

The automobile assembly plant you manage has a Cobb-Douglas production function given by
$P = 10 x ^ { 0.3 } y ^ { 0.7 }$
Where P is the number of automobiles the plant produces per year, x is the number of employees, and y is the daily operating budget (in dollars) . You maintain a production level of 3,500 automobiles per year. If you currently employ 100 workers and are hiring new workers at a rate of 10 per year, how fast is your daily operating budget changing Round your answer to the nearest cent.

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Definitions:

Slash-And-Burn Agriculture

A method of farming that involves cutting and burning plants in a forest or woodland to create fields.

Subsistence Agriculture

Farming practice in which crops are grown only to meet the needs of the farm family.

Consumption

The process in which energy and resources are used, often referring to the intake of food by organisms.

Cattle Ranching

An agricultural practice focused on raising cattle for meat, milk, or other products, typically involving extensive land use for grazing.