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Question: Suppose a company's monthly production value Q, in thousands of dollars, is given by the Cobb-Douglas production function
Q = 10K0.45L0.55
where K is thousands of dollars of capital investment per month and L is the total hours of labor per month. Capital investment is currently $10,000 per month and monthly work-hours of labor total 1590.
(a) Find the monthly production value (to the nearest thousand dollars).
(b) Find the marginal productivity with respect to capital investment, and interpret your result.
(c) Find the marginal productivity with respect to total hours of labor, and interpret your result.
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