Let the production function of a firm be Q = 5L1/2K1/2 Find out the maximum possible output
Let the production function of a firm be Q = 5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.
5 views
1 Answers
Q = 5L1/2K1/2 ....Equation (1)
L = 100 units of labour
K = 100 units of capital
Putting these values in equation (1)
Q = (100)1/2(100)1/2
= 5(10)(10)
=500 units
Thus, the maximum possible output that he firm can produce is 500 units.
5 views
Answered