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Question
Let the production function of a firm be Q = 2L2 K2.
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?
Solution
a) Q = 2L2 K2 ............(1)
L = 5 units of labour
K = 2 units of capital
Putting these values in equation (1)
Q = 2 (5)2(2)2
= 2 (25) (4)
Q = 200 units
b) If L = 0 units and K = 100 units
Putting these values in equation (1)
Q = 2 (0)2 (100)2
Q = 0 units
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