Step 1 :We look for the combination of labor $L$ and capital $K$ such that the cost is minimized while producing 36,000 units of goods. The cost of each unit of labor is $100 and the cost of each unit of capital is $600. The quantity of goods produced is given by $Q=900L^{\frac{1}{2}}K^{\frac{2}{3}}$.
Step 2 :We set $Q=36000$ and solve for $L$ in terms of $K$: \[36000=900L^{\frac{1}{2}}K^{\frac{2}{3}} \Rightarrow L=\left(\frac{36000}{900K^{\frac{2}{3}}}\right)^2=\left(\frac{40}{K^{\frac{2}{3}}}\right)^2\]
Step 3 :The cost $C$ is given by $C=100L+600K=100\left(\frac{40}{K^{\frac{2}{3}}}\right)^2+600K$.
Step 4 :We take the derivative of $C$ with respect to $K$ and set it equal to zero to find the minimum cost: \[\frac{dC}{dK}=-\frac{160000}{K^{\frac{5}{3}}}+600=0 \Rightarrow K=\left(\frac{160000}{600}\right)^{\frac{3}{5}}\approx 56.57\]
Step 5 :We substitute $K\approx 56.57$ into the equation for $L$ to find $L\approx \left(\frac{40}{56.57^{\frac{2}{3}}}\right)^2\approx 21.54$.
Step 6 :We substitute $L\approx 21.54$ and $K\approx 56.57$ into the equation for $C$ to find the minimum cost $C\approx 100(21.54)+600(56.57)\approx \$ 35942.20$.
Step 7 :The combination of labor and capital that should be used to produce 36,000 units of goods at minimum cost is approximately $L\approx 21.54$ and $K\approx 56.57$. The minimum cost is approximately \$35942.20.