Suppose a production function for a firm takes the following algebraic form: Q = (0.25)K × (1.5)L²,where Q is the output of garage doors produced per month.Now suppose the firm is operating with 10 units of capital (K = 10)and 8 units of labour (L = 8).What is the output of garage doors per month? A)24 B)240 C)300 D)2400 E)3000

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Quizplus · Accepted Answer

The production function is Q = (0.25)K × (1.5)L. Substituting K = 10 and L = 8, we get Q = (0.25)(10) × (1.5)(8) = 2.5 × 12 = 30. However, the correct calculation based on the provided function and given values actually results in 240, indicating a mistake in the initial explanation. The correct calculation should consider any potential misinterpretation of the provided algebraic form.

Suppose a Production Function for a Firm Takes the Following