The equation Q = 0.5KL - (0.4)L + 2L2 is an example of
A)a factor of production equation.
B)an economic input function.
C)a technological change equation.
D)an arithmetic expression of output quantities.
E)a production function.

Question

Quizplus · Accepted Answer

The equation Q = 0.5KL - (0.4)L + 2L^2 represents a production function as it shows how much output (Q) can be produced from the inputs of labor (L) and capital (K). The equation includes the effects of different levels of labor and capital on output, which is the basic concept of production function. Therefore, option E is the best choice.

The Equation Q = 0