The aggregate production function is Y = 4K^0.5L^0.5. If there are 169 units of capital and 49 units of labor, aggregate output is A) 308 units. B) 364 units. C) 455 units. D) 626 units.

Question

Quizplus · Accepted Answer

The aggregate production function is given as $Y = 4K^{0.5}L^{0.5}$. Substituting the given values of $K = 169$ and $L = 49$, we get $Y = 4(169)^{0.5}(49)^{0.5} = 4(13)(7) = 364$ units.

The Aggregate Production Function Is Y = 4K0

The Aggregate Production Function Is Y = 4K⁰