An extra hour of machine time costs 100 and an extra hour


If a company has m hours of machine time and w hours of labor, it can produce 3m^(1/3)w^(2/3) units of a product. Currently, the company has 216 hours of machine time and 1,000 hours of labor. An extra hour of machine time costs $100, and an extra hour of labor costs $50. If the company has $100 to invest in purchasing additional labor and machine time, would it be better off buying I hour of machine time or 2 hours of labor?

Solution Preview :

Prepared by a verified Expert
Engineering Mathematics: An extra hour of machine time costs 100 and an extra hour
Reference No:- TGS01267901

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)