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13-05-2023
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A manufacturer's total production of a new product is PL, K) 1200L2/3K1/3 where L is the number of units of labor and K is the number of units of capital. A unit of labor costs $100, a unit of capital $400, and the total budget for labor and capital is $360,000 (a) To maximize production, how much should be spent on labor? How much on capital? (b) Find the value of the Lagrange multiplier

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