The productivity of a certain country is given by Q(K,L)=90K1/3L2/3 units, where
ID: 2873754 • Letter: T
Question
The productivity of a certain country is given by Q(K,L)=90K1/3L2/3 units, where K is the capital expenditure in units of $1 million and L is the size of the labor force in thousands of worker-hours. The capital expenditure is currently 5.428 billion dollars and the labor level is 5737000 worker-hours. If productivity is desired to be increased by 1100 units and capital expenditures are to be increased by 18 million dollars, what change should be made to the labor force?
I got L= (1100-30*18*(5737/5428)^(2/3))/(60*(5428/5737)^(1/3)), whihc is wrong. I don't know why---
Explanation / Answer
The productivity of a certain country is given by Q(K,L)=90K1/3L2/3 units, where K is the capital expenditure in units of $1 million and L is the size of the labor force in thousands of worker-hours. The capital expenditure is currently 5.428 billion dollars and the labor level is 5737000 worker-hours. If productivity is desired to be increased by 1100 units and capital expenditures are to be increased by 18 million dollars, what change should be made to the labor force?
I got L= (1100-30*18*(5737/5428)^(2/3))/(60*(5428/5737)^(1/3)),
i am also get same answer
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