If the company is now using 250 units of labor and 125


The productivity of an automobile-manufacturing company is given approximately by the function

201_Equation 4.jpg

with the utilization of x units of labor and y units of capital.

(A) Find fx(x,y) and fy(x,y).

(B) If the company is now using 250 units of labor and 125 units of capital, find the marginal productivity of labor and the marginal productivity of capital.

(C) For the greatest increase in the company s productivity, should the management encourage increased use of labor or increased use of capital?

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