Let the production function of a firm be Q = 2L2K2 Find out the maximum possible output that the firm can produce with 5 units of L and 2 units of K.
Let the production function of a firm be Q = 2L2K2
Find out the maximum possible output that the firm can produce with 5 units of L and 2 units of K. What is the maximum possible output that the firm can produce with zero unit of L and 10 units of K?
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(a) Q = 2L2K2 .....(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 these values in equation (1)
Q = 2(0)2(100)2
Q = 0 units
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