Your automobile assembly plant has a Cobb-Douglas production function given by where q is the number of automobiles it produced per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $10,000 per employee plus the operating budget of $ . Assume you wish to produce 1,000 automobiles per year at a minimum cost. How many employees should you hire?
A) employees
B) employees
C) employees
D) employees
E) employees

Question

Your automobile assembly plant has a Cobb-Douglas production function given by  where q is the number of automobiles it produced per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $10,000 per employee plus the operating budget of $  . Assume you wish to produce 1,000 automobiles per year at a minimum cost. How many employees should you hire?
A) employees 
B) employees 
C) employees 
D) employees 
E) employees

Quizplus · Accepted Answer

The Answer of Your automobile assembly plant has a Cobb-Douglas production function given by  where q is the number of automobiles it produced per year, x is the number of employees, and y is the daily operating budget (in dollars). Annual operating costs amount to an average of $10,000 per employee plus the operating budget of $  . Assume you wish to produce 1,000 automobiles per year at a minimum cost. How many employees should you hire?
A) employees 
B) employees 
C) employees 
D) employees 
E) employees

Your Automobile Assembly Plant Has a Cobb-Douglas Production Function Given