Impacts of Labor and Capital on Manufacturing Production Function
Rohitha Goonatilake *
Department of Engineering, Mathematics, and Physics, Texas A&M International University, Laredo, TX 78041, USA
Susantha Herath
Department of Information Systems, St. Cloud State University, St. Cloud, MN 56301, USA
*Author to whom correspondence should be addressed.
Abstract
In essence, the power of compounding, together with the effect of discounting, has resulted in calculations of sinking funds and amortization possible. A greater aspect of this concept has allowed the business world to flourish and, at the same time, borrowing, financing, and mortgages have become extensively feasible. In this paper, we will attempt to provide a glimpse of these business concepts using concrete examples and calculations that use mathematical concepts. The Cobb-Douglas production function is given special consideration with a collection of related factors associated with this topic such as elasticity of demand and impacts of labor unions. Furthermore, in terms of the Cobb-Douglas Production Function, the behaviors of for the different choices of are significantly linear. An economic scenario in which unskilled and professionals are taken into account, the elasticity of the marginal utility function follows a linear, exponential, and logarithmic relationship for various choices of parameter.
Keywords: Sinking funds, amortization, calculus, future and present values, Cobb-Douglas production function