Cobb-Douglas Productivity Functions Have the Form Where P Stands

question 53

Multiple Choice

Cobb-Douglas productivity functions have the form 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 How many items will be produced per year by a company that has 150 employees and an annual operating budget of $70,000 if K = 1000 and a = 0.6? (Round your answer to one significant digit.)

• A)1,000,000
• B)2,000,000
• C)3,000,000
• D)1,752,645.1
• E)2,752,645.1

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