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Suppose a Production Function for a Firm Takes the Following

Question 21

Multiple Choice

Suppose a production function for a firm takes the following algebraic form: Q = 2KL - (0.2) L2,where Q is the output of sweaters per day.Now suppose the firm is operating with 8 units of capital (K=8) and 10 units of labour (L=10) .What is the output of sweaters?


A) 30 sweaters per day
B) 60 sweaters per day
C) 80 sweaters per day
D) 140 sweaters per day
E) 155 sweaters per day

Correct Answer:

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