  Suppose that a company's production for Q units of its product is given by the Cobb-Douglas production function shown below, where K is dollars of capital investment and L is labor hours.Q = 30K1/4L3/4(a) Find Q if K = \$625 and L = 625 hours.Q =  (b) Show that if both K and L are doubled, then the output is doubled.Q(2K, 2L) =  (c) If a capital investment is held at \$10,000, graph Q as a function of L.

Question

Suppose that a company's production for Q units of its product is given by the Cobb-Douglas production function shown below, where K is dollars of capital investment and L is labor hours.

Q = 30K1/4L3/4
(a) Find Q if K = \$625 and L = 625 hours.
Q =

(b) Show that if both K and L are doubled, then the output is doubled.
Q(2K, 2L) =

(c) If a capital investment is held at \$10,000, graph Q as a function of L

Step 1

Company's produciton function is given below

Q= units produced

K= dollars of capital investment

L= Labor hours

Given K = \$625 and L = 625 hours. By substituting these values we get Q = 18750 units.

Step 2

To show if K and L are doubled then output is doubled.

Let us substitute K = 2K and L = 2L in the produciton funciton as shown below, then we get the total ...

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