Suppose a Production Function for a Firm Takes the Following

question 51

Multiple Choice

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

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Definitions:

Face Values

The nominal value or original amount stated on a financial instrument, such as a bond or a stock certificate.

Journal Entries

The basic means of recording financial transactions in the accounting system, consisting of debits and credits to various accounts.

Market Rate

The prevailing interest rate available in the marketplace for investments or loans of similar risk and maturity.

Contract Rate

The agreed upon rate in a financial contract, such as the interest rate on a loan or bond.