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Solve the model with excel solver

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Reference no: EM13961927

URE Industries gets a productivity of f(x, y) = 2*x^2*y + 3*x*y^2 + 2*y^3

from x units of labor and y units of capital. If labor costs $50 per unit and capital costs $100 per unit, how many units of labor and capital should URE use, given that its budget is 150,000$?

a) Assume that x and y can be positive or negative (URE can either consume or supply labor and capital), formulate the model and solve it with Excel Solver. Try different starting points (initial values in the changing cells).

b) Assume that x and y are nonnegative, solve the model with Excel Solver.

Reference no: EM13961927

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