Suppose the production function is given by Q = K^1/2L^1/2,and that Q = 30 and K = 25.How much labor is employed by the firm? A) 49 B) 6 C) 36 D) 25

Question

Quizplus · Accepted Answer

We need to solve for the value of the variable L, which represents labor employed by the firm. Substituting the given values, we get:
30 = 25S^1U^1P^1/2S^1S^1P^0L^1U^1P^1/2S^1S^1P^0
Simplifying this expression, we get:
30/25 = L
L = 1.2K
L = 1.2(25) = 30
Therefore, the labor employed by the firm is 36.

Suppose the Production Function Is Given by Q = K1/2L1/2,and

Suppose the Production Function Is Given by Q = K^1/2L^1/2,and