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December 21, 2014

December 21, 2014

Posted by **Anonymous** on Monday, April 4, 2011 at 9:53am.

q = 6 * W^(3/4) * K^(1/4)

Labor costs are $10 per worker and capital costs are $20 per unit, and the budget is $2000.

What are the optimum number of workers and the optimum number of units of capital?"

Thank you in advance for any help!

- Calculus -
**bobpursley**, Monday, April 4, 2011 at 11:19am2000=(q)(10+20)

q=2000/30=667

dq=6*3/4*w^-.25 K^.25 + 6w^.75 * .25K^-.75 =0

18/4*K=6/4 w

3K=w

but from the original equation

667=6 w^.75 * (w/3)^.25

667=6 w (1/3)^.25

and you have w, then go back and k is 3 times that.

check my work, it is easy to err when typing these

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