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Find out the maximum possible output for a firm with zero unit of L and 10 units of K when its production function is : Q=5L+2K. |
Answer» <html><body><p></p>Solution :Given : `Q=5L+2K`. And `L=0` <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a>, `<a href="https://interviewquestions.tuteehub.com/tag/k-527196" style="font-weight:bold;" target="_blank" title="Click to know more about K">K</a>=10` units <br/> Putting the values of L and K in the f=given production, we <a href="https://interviewquestions.tuteehub.com/tag/get-11812" style="font-weight:bold;" target="_blank" title="Click to know more about GET">GET</a>: <br/> `Q=5(0)+<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>(10)` <br/> Q or <a href="https://interviewquestions.tuteehub.com/tag/maximum-556915" style="font-weight:bold;" target="_blank" title="Click to know more about MAXIMUM">MAXIMUM</a> output `= 20` units.</body></html> | |