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 is an example of a production function which shows the relationship between inputs (K, L, S1, U1, P12, S1, S1, P0) and output (Q). It is similar to the Cobb-Douglas production function and therefore falls under the category of production functions.

The Equation Q = 0