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A manufacturer company estimates that the production
function for its product is given by
Q=F(K,L)= 5 K^0.8L^0.2

Where L is the number of units of labour and K is the number of
units of capital used in the production process. Each unit of
labour costs RM8, per unit of capital costs is RM 4 and the total
input expenditure is RM 400. Determine:
The marginal productivities of capital (MPK), FK and marginal
productivity of labour (MPL), FL
Suppose currently K = 10 and L =30, if the firm plan to increase
production which factor would it hire more?
If the firm maximizes output subject to cost constraint, determine
the optimal number of workers and capital to hire.
( 14 marks)
A local company, MOM sdn Bhd produces two types of bread, white and
wheat. The firm estimates that the total cost, C (x,y) are as
follows:
C x,y= 10x^2+ 10xy+20y^2+ 30,000x-10,000y+20,000
Where x denotes the number of loaves of white bread and y denotes
the number of wheat bread.

Find Cx and Cy. Interpret Cx when 250 loaves of each type bread are
produced.