5
Question
Let the
production function of a firm be Q = 2L2 K2.
Find out
the maximum possible output that the firm can produce with 5 units of
L and 2 units of K. What is the maximum possible output
that the firm can produce with zero unit of L and 10 units of
K?
Let the production function of a firm be Q = 2L2 K2.
Find out the maximum possible output that the firm can produce with 5 units of L and 2 units of K. What is the maximum possible output that the firm can produce with zero unit of L and 10 units of K?
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Solution
a) Q
= 2L2 K2 (1)
L =
5 units of labour
K =
2 units of capital
Putting
these values in equation (1)
Q =
2 (5)2(2)2
= 2 (25)
(4)
Q =
200 units
b) If L
= 0 units and K = 100 units
Putting
these values in equation (1)
Q =
2 (0)2 (100)2
Q =
0 units
a) Q = 2L2 K2 (1)
L = 5 units of labour
K = 2 units of capital
Putting these values in equation (1)
Q = 2 (5)2(2)2
= 2 (25) (4)
Q = 200 units
b) If L = 0 units and K = 100 units
Putting these values in equation (1)
Q = 2 (0)2 (100)2
Q = 0 units
Suggest Corrections
5
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