Suppose that a firm uses both labor (L)and capital (K)as inputs.The firm's long-run production function is Q = F(L,K)= 4√L√K.The firm has _____ units of capital.If the firm uses an efficient production method and hires _____ workers,it can produce _____ units of output.
A) 100; 100; 40,000
B) 100; 225; 90,000
C) 225; 100; 400
D) 225; 225; 900

Question

Quizplus · Accepted Answer

Given the production function Q = 4√L√K, substituting L = 225 and K = 225 gives Q = 4√225√225 = 4*15*15 = 900, indicating an efficient production method with these inputs yields 900 units of output.

Suppose That a Firm Uses Both Labor (L)and Capital (K)as