A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K' = L' = 10 to produce Q' units of corn where
Q'

Question

A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K' = L' = 10 to produce Q' units of corn where
Q' < F(10, 10) is said to be

Quizplus · Accepted Answer

A production plan is said to be technically feasible if the inputs required to produce the desired output are available. In this case, the plan uses K' = L' = 10, which are available inputs. However, since Q' < F(10, 10), the plan is technically inefficient as it is possible to produce Q' units of corn using fewer inputs.

A Farmer Uses L Units of Labor and K Units