Given the Leontief production function Q = min{5.5K,6.7L},how much output is produced when K = 40 and L = 35?
A) 220
B) 234.5
C) 192.5
D) 268

Question

Quizplus · Accepted Answer

The Leontief production function output is determined by the minimum of the two inputs after being multiplied by their respective coefficients. Here, 5.5K = 5.5*40 = 220, and 6.7L = 6.7*35 = 234.5. The minimum of these two is 220, hence the output is 220.

Given the Leontief Production Function Q = Min{5