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Let the production function of afirm be Q=2L^(2) K^(2). 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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Answer» SOLUTION :(i) `Q=2L ^(2) K^(2) ` (Given) `Q=2 xx 5^(2) xx 2^(2) ` `Q=2 xx25xx4=200` units. So, the maximum POSSIBLE output `(Q)=200` units. (ii) `Q=2L^(2) K^(2)` (Given) `Q=2 xx 0^(2) xx 10^(2)` `Q=2 xx 0 xx 20 =0` So, the maximum possible output (Q) `=0` units. |
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