Let the production function of a firm be Find out the maximum possible output that the firm can produce with 5 units of and 2 units of . What is the maximum possible output that the firm can produce with zero unit of and 10 units of ?
The maximum possible output that the firm can produce with 5 units of L and 2 units of K is 200 units.
The maximum possible output that the firm can produce with zero unit of L and 10 units of K is 0 units.
Explanation
This question tests the understanding of production function. A production function tells us the maximum quantity of output (q) that can be produced by using different combinations of Labour (L) and Capital (K). The production function given is Q = 2L²K². To find the maximum output, we simply substitute the given values of L and K into the production function equation.