A Company Has the Cobb-Douglas Production Function , Where

question 71

Multiple Choice

A company has the Cobb-Douglas production function , where x is the number of units of labor, y is the number of units of capital, and z is the units of production. Suppose labor costs $200 per unit, capital costs $150 per unit, and the total cost of labor and capital is limited to $300,000. Find the number of units of labor and the number of units of capital that maximize production. ​

• A) 1,500 units of labor; 2,000 units of capital
• B) 1,200 units of labor; 2,000 units of capital
• C) 1,500 units of labor; 400 units of capital
• D) 1,200 units of labor; 400 units of capital
• E) 12,000 units of labor; 4,000 units of capital

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