A manufacturer has modeled its yearly production function P (the monetary value of its entire production in millions of dollars) as a Cobb-Douglas function P(L, K) = 1.47L0.65K0.35 where L is the number of labor hours (in thousands) and K is the invested capital (in millions of dollars). Find P(100, 45) and interpret it. (Round your answers to one decimal place.)

Step-by-step explanation:

We are given the following in the question:

where P(L,K) is the monetary value of its entire production in millions of dollars,  L is the number of labor hours in thousands and K is the invested capital in millions of dollars.

We have to find the value of P(100, 45).

Putting values, we get,

Interpretation:

When manufacture invests 45 million dollars and 100 thousand hours of labor are completed, then, the yearly monetary value of its entire production is approximately 111.15 million dollars.