**The Cobb-Douglas production function for a bicycle company is given by f(x,y) = 23x ^{0.2}y^{0.8}, Where x is the utilization of labor and y is the utilization of capital. If the company uses 1275 units of labor and 1694 units of capital, how many bicycles will be produced?**

*Solution:*

Given values in the questions are x = 1275 and y = 1694

Put these values in the given equation

f(x,y) = 23(1275)^{0.2}(1694)^{0.8}

= 36809.56 ~ 36810

So the company will produce **36810 **bicycles.