Solve the Problem. -The Cobb-Douglas Function for a New Product Is Given by Is

Multiple Choice

Solve the problem.
-The Cobb-Douglas function for a new product is given by where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of
Labor costs $40, and each unit of capital costs $80. If $400,000 has been budgeted for the production of this
Product, determine how this amount should be allocated in order to maximize production, and find the
Maximum production.

A)
B)
C)
D)