The Production Function for a Company's Product Is P =

question 22

Short Answer

The production function for a company's product is P = 100L + 50k -
-
,where P is the output that results from L units of labor and k units of capital.The unit costs of labor and capital are 6 and 3,respectively.If the company wants the total cost of inputs to be 30,determine the greatest output possible subject to this budget constraint.

---

Definitions:

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ranked.

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.