Suppose the production function is given by Q = min{K,L}.How much output is produced when 10 units of labor and 9 units of capital are employed?
A) 0
B) 4
C) 9
D) 13

Question

Quizplus · Accepted Answer

Since the production function is given as Q = min{K, L}, the output will be limited to the amount of the factor used in lesser quantity. When 10 units of labor and 9 units of capital are employed, the minimum of the two factors is 9. Therefore, the level of output produced is 9.

Suppose the Production Function Is Given by Q = Min{K,L}