The Automobile Assembly Plant You Manage Has a Cobb-Douglas Production

Multiple Choice

The automobile assembly plant you manage has a Cobb-Douglas production function given by where P is the number of automobiles the plant produces per year, x is the number of employees, and y is the daily operating budget (in dollars) . You maintain a production level of 5,000 automobiles per year. If you currently employ 150 workers and are hiring new workers at a rate of 10 per year, how fast is your daily operating budget changing?

A) -$9,663.33 per year
B) $45.10 per year
C) $64.42 per year
D) $350.74 per year
E) -$64.42 per year