Let the production function of a firm be
Q = 2L2K2
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?
The production function of a firm is –
Q = 2L2K2
Where,
Q – Output
L – Labour
K – Capital
Given,
L = 5
K = 2
Therefore, Q = 2 (5)2(2)2
Q = 2 X 25 X 4
Q = 200
When,
L = 0
K = 10
Therefore, Q = 2 (0)2(10)2
Q = 2 X 0 X 100
Q = 0