Advertisements
Advertisements
Question
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.
Advertisements
Solution
`Q=5L^(1/2)K^(1/2)................(1)`
L = 100 units of labour
K = 100 units of capital
Putting these values in equation (1)
`Q = 5(100)^(1/2)(100)^(1/2)`
= 5(10)(10)
= 500 units
Thus, the maximum possible output that he firm can produce is 500 units.
RELATED QUESTIONS
Define production function.
Explain the concept of a production function.
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?
What is meant by production function?
The functional relationship between “inputs” and “outputs” is called as
The long-run production function is explained by
A production function measures the relation between
If average product is decreasing, then marginal product
State the production function.
Which statement best describes a production function?
Which of the following is a flow concept?
If only labour can be changed and capital is kept fixed, the firm uses ______.
When all inputs are changed in the same proportion in production, it is known as ______.
Which law is studied with the short‑run production function Q = f(L)?
Which one illustrates a long‑run decision for a firm?
What is the dependent variable in the production function Qx = f(f1, f2, ..., fn)?
