The Cobb–Douglas production function for a company is given by P= 20l1/3k2/3, where P
is the monthly production value when k is the amount of the company’s capital investment
(in dollars per month) and l is the size of the labor force (in work hours per month). Find
Pll and Plk.
If x2y+xz +z2= 4, find z
x.
Determine the critical points of f(x, y) =x2+xy +y3–y and also determine by the
second–derivative test whether each point corresponds to a relative maximum, to a relative
minimum, to neither, or whether the test gives no information.
Use the method of Lagrange multipliers to determine the critical points of f(x, y, z) =x2+
4y–z2subject to the constraint x +2y– 4z= 3.
Determine the critical points of f(x, y) = 3x2+ 4y2– 2x+ 8y and also determine by the
second–derivative test whether each point corresponds to a relative maximum, to a relative
minimum, to neither, or whether the test gives no information.
The Cobb–Douglas production function for a company is given by P(k, l) = 65k0.3l0.7
where P is the monthly production value when k is the number of units of capital and l is
the number of units of labor. Suppose that capital costs $60 per unit, labor costs $140 per
unit, and the total cost of capital and labor is limited to $70,000. Use Lagrange multipliers
to write the system of equations you would use to find the number of units of capital and
labor that maximize production.