Let the production function of a firm be Q = 5L 1/2 K 1/2 Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.

Question

Philoid · Accepted Answer

The production function of a firm is

Where,

Q – Output

L – Labour

K – Capital

Given,

L = 100

K = 100

Therefore, Q = 5(100) ^1/2 + 2 (100)^1/2

Q = 5 X 10 X 10

Q = 500

Let the production function of a firm beQ = 5L1/2K1/2Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.

Let the production function of a firm be
Q = 5L^1/2K^1/2

Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.