Scenario 7.2:
The production function for earthquake detectors (Q) is given as follows:
Q = 4K 1 /2 L 1/2
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, P K , is $18 and the price of labor, P L , is $2.
-Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas
B) Leontief
C) Fixed proportions
D) Lagrange
E) none of the above

Question

Scenario 7.2:
The production function for earthquake detectors (Q) is given as follows:
Q = 4K 1 /2 L 1/2 
where K is the amount of capital employed and L is the amount of labor employed. The price of capital, P K , is $18 and the price of labor, P L , is $2.
-Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas
B) Leontief
C) Fixed proportions
D) Lagrange
E) none of the above

Quizplus · Accepted Answer

The production function Q = 4K¹^/2L^1/2 exhibits characteristics of a Cobb-Douglas production function, which typically has inputs raised to a power (in this case, the exponents on K and L), indicating the output elasticity with respect to each input.

Scenario 7.2: the Production Function for Earthquake Detectors (Q) Is Given as Given