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