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mel-nik [20]
3 years ago
5

Find the minimum cost of producing 50,000 units of a product, where x is the number of units of labor (at $36 per unit) and y is

the number of units of capital (at $48 per unit).
(Round your answer to two decimal places.)


P(x, y) = 100x^0.6y^0.4
Mathematics
1 answer:
erastovalidia [21]3 years ago
6 0

Answer:

Step-by-step explanation:

Given problem: C(x,y) = 36x + 48y

constraint: 100x^0.6y^0.4

Using langrange Multiplier,

36 = 0.6(100)x^-0.4y^0.4λ         i

48 = 0.4(100)x^0.6y^-0.6λ         ii

dividing the equations we have:

x = 2y

substituting into the constraint

p(x,y) = 100 *(2y)^0.6 y^0.4 = 100*2^0.6 *y

5000  = 151.572y

y = 329.876 labor units

x = 659.752 capital units

Minimum cost = 36(659.752) +48(329.876) = $39585.12

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