Answered: If the optimal quantities of labour and…

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If the optimal quantities of labour and capital were employed, then the total output is approximately: a.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 18PAE

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Question

Consider the following production function:

Q = 100L^0.5K^0.5

Subject to the budget constraint 5L + 10K = 75; where L is labour and K is capital. If the optimal quantities of labour and capital were employed, then the total output is approximately:

530 units

1371 units

2150 units

604 units

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