A company has 6800 dollars to invest which must be divided, Ask an Expert

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A company has 6800 dollars to invest, which must be divided between capital expenditures and labor. Each unit of labor costs the company 10 dollars, and each unit of capital costs 10 dollars. Therefore 10L+40K=6800, where L and K are the units of labor and capital, respectively. Production output is modeled by the Cobb-Douglas formula P=L^(0.8)K^(0.2). Find the values of L and K which maximize production.

L= ______

K= ______

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91924795

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