Suppose a Cobb-Douglas Production function is given by the following:

P(L, K) = 60L^ 0.5 K^0.5

where I is units of labor, K is units of capital, and P(L, K) is total units that can be produced

with this labor/capital combination. Suppose each unit of labor costs $200 and each unit of

capital costs $1,800. Further suppose a total of $108,000 is available to be invested in labor and

capital (combined).

A) How many units of labor and capital should be "purchased" to maximize production subject to

your budgetary constraint?

Units of labor, L =

Units of capital, K-

B) What is the maximum number of units of production under the given budgetary conditions?

(Round your answer to the nearest whole unit.)

Max production =

units