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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