Cobb-Douglas productivity functions have the form

Question

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where P stands for the number of items produced per year, x is the number of employees, and y is the annual operating budget. The numbers k and a are constants that depend on the situation we are looking at, with .

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How many items will be produced per year by a company that has 150 employees and an annual operating budget of $80,000 if and ? (Round your answer to one significant digit.)

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A. 3245342.2

B. 4,000,000

C. 4245342.2

D. 1,500,000

E. 3,000,000

Answer 1

Answer: E