1.

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

Answer»

SOLUTION :`Q=5L ^(1//2) K^(1//2)` (GIVEN)
`Q=5 xx 100^(1//2) xx 100^(1//2)`
`Q=5 xx 10 xx 10 = 500` UNITS
So, the maximum possible units output (Q) `=500` units.


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