The daily output at a factory is Q(K, L) = 144KL units, where K is the capital investment measured in units of $1000 and L is the size of the labor force measured in worker-hours. (a) Compute the daily output if the capital investment is $139,000 and the size of the labor force is 1025 worker-hours. (b) What will the output be if both the level of capital investment and the size of the labor force are cut in half?
The daily output at a factory is Q(K, L) = 144KL units, where K is the capital investment measured in units of $1000 and L is the size of the labor force measured in worker-hours. (a) Compute the daily output if the capital investment is $139,000 and the size of the labor force is 1025 worker-hours. (b) What will the output be if both the level of capital investment and the size of the labor force are cut in half?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 8E
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![The daily output at a factory is Q(K, L) = 144KL units, where K is the capital investment measured
in units of $1000 and L is the size of the labor force measured in worker-hours.
(a) Compute the daily output if the capital investment is $139,000 and the size of the labor force is 1025
worker-hours.
(b) What will the output be if both the level of capital investment and the size of the labor force are cut in
half?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd4c8a04-0d34-48a3-808f-f33dd4753c99%2Ff044ea3a-6400-4233-ab83-34080d37afca%2Fyvrtp3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The daily output at a factory is Q(K, L) = 144KL units, where K is the capital investment measured
in units of $1000 and L is the size of the labor force measured in worker-hours.
(a) Compute the daily output if the capital investment is $139,000 and the size of the labor force is 1025
worker-hours.
(b) What will the output be if both the level of capital investment and the size of the labor force are cut in
half?
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