Suppose a production function for a firm takes the following algebraic form: Q = (0.5)KL - 40L,where Q is the output of paintbrushes per week.Now suppose the firm is operating with 100 units of capital (K = 100)and 30 000 units of labour (L = 30 000).What is the output of paintbrushes per week?
A)30 000
B)3 000 000
C)300 000
D)1 500 000
E)1 200 000

Question

Quizplus · Accepted Answer

Substituting K = 100 and L = 30,000 into the production function: 
Q = (0.5)(100)(30,000) - 40(30,000) 
Q = 1,500,000 - 1,200,000 
Q = 300,000

Therefore, the output of paintbrushes per week is 300,000.

Suppose a Production Function for a Firm Takes the Following