A Company Has the Cobb-Douglas Production Function , Where

question 20

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 $200 per unit, and the total cost of labor and capital is limited to $400000. Find the number of units of labor and the number of units of capital that maximize production.

• A) units of labor; units of capital
• B) units of labor; units of capital
• C) units of labor; units of capital
• D) units of labor; units of capital
• E) units of labor; units of capital

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Definitions:

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