Let the production function of a firm be Q = 2L2 K2.
Find out the maximum possible output that the firm can produce with 5 units of Land
2 units of K. What is the maximum possible output that the firm can produce with zero
unit of Land 10 units of K?
Answers
Answered by
1
Answer:
(a) Q = 2L2 K2 ...(1)
L= 5 units of labour
K= 2 units of capital
Putting these values in equation (1)
Q= (2)(5)^2 (2)^2
= 2(25)(4)
Q= 200 units
(b) If L=0 units and K=100 units
Putting those values in equation (1)
Q= 2(0)^2 (100)^2
Q= 0 units
Similar questions