Suppose a production function for a firm takes the following algebraic form: Q = (0.25)K × (1.5)L²,where Q is the output of garage doors produced per month.Now suppose the firm is operating with 10 units of capital (K = 10)and 8 units of labour (L = 8).What is the output of garage doors per month? A)24 B)240 C)300 D)2400 E)3000

Question

Quizplus · Accepted Answer

Output = (0.25)K × (1.5)L²= (0.25) × 10 × (1.5) × 8²= (0.25) × 10 × (1.5) × 64= 240

Suppose a Production Function for a Firm Takes the Following