Find the rate of change of production

Reference no: EM131012814

A manufacturer has modeled its yearly production function P (the value of its entire production in millions of dollars) as a Cobb-Douglas function

P(L, K) = 1.47 L^0.65 K^0.35

where L is the number of labor hours (in thousands) and K is the invested capital (in millions of dollars). Suppose that when L= 30 and K=8, the labor force is decreasing at a rate of 2000 labor hours per year and capital is increasing at a rate of $500,000 per year. Find the rate of change of production.

Reference no: EM131012814

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