Suppose that a firm uses both labour (L)and capital (K)as inputs.The firm's long-run production function is Q = F(L,K)= 5ÖLÖK.The firm has 100 units of capital.If the firm uses an efficient production method,how much output does it produce in the short run if it hires 25 workers?
A) 250 units
B) 1,250 units
C) 2,500 units
D) 50 units

Question

Quizplus · Accepted Answer

Given the production function Q = 5√L√K, with L = 25 workers and K = 100 units of capital, substituting these values gives Q = 5√25√100 = 5*5*10 = 250 units.

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