Question

let the production function of a firm be Q= 5L1/2 K1/2 find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K​

Answer 1

Answer:

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Explanation:

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Answer 2

The maximum possible output that the firm can produce is 500 units

Q = 5L1/2K1/2 (Given) --- Equation 1

Units of labour = L = 100 (Given)

Units of capital = K = 100  (Given)

Substituting the values in equation 1

Therefore,

Q = (100)1/2 × (100)1/2

= 5 × 10 × 10

= 500 units

Therefore, the maximum possible output which firm can produce is 500 units