Suppose the Quantity, Q, of a Good Produced Depends on the Number

question 63

Short Answer

Suppose the quantity, q, of a good produced depends on the number of workers, w, and the amount of capital, k, invested and is represented by the Cobb-Douglas function $q = 6 w ^ { \frac { 3 } { 4 } } k ^ { \frac { 1 } { 4 } }$ .In addition, labor costs are $20 per worker and capital costs are $20 per unit, and the budget is $3680.Using Lagrange multipliers, find the optimum number of units of capital.

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