Laying off workers at an instantaneous rate

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In economics, Cobb-Douglas functions can be used to model how a company's production amount (P ) depends on the amount of labor involved (L) and the amount of capital invested (K). For a particular company, this relationship isP = L2/3K1/3. Suppose the company's current labor force is L = 1000 workers, and the company is currently investingK = $64,000 in capital to produce a particular product. Due to economic difficulty, the company is currently laying off workers at an instantaneous rate of 2 workers per week. If the company would liketo keep its production level constant, at what instantaneous rate must it change its capital investment (with respect to time) right now?

Reference no: EM133083517

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