Your Automobile Assembly Plant Has a Cobb-Douglas Production Function Given

question 5

Multiple Choice

Your automobile assembly plant has a Cobb-Douglas production function given by where q is the number of automobiles it produced per year, x is the number of employees, and y is the daily operating budget (in dollars) . Annual operating costs amount to an average of $10,000 per employee plus the operating budget of $ . Assume you wish to produce 1,000 automobiles per year at a minimum cost. How many employees should you hire?

• A) employees
• B) employees
• C) employees
• D) employees
• E) employees

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Definitions:

Avoid Conflict

The act of steering clear of disagreements and disputes, often to maintain harmony and prevent escalation in professional or personal contexts.

Conjoint Analysis

A statistical technique used in market research to determine how consumers value different attributes that make up a product or service.