Suppose a Production Function for a Firm Takes the Following

question 79

Multiple Choice

Suppose a production function for a firm takes the following algebraic form: Q = 2KL - (0.2) L2,where Q is the output of sweaters per day.Now suppose the firm is operating with 8 units of capital (K=8) and 10 units of labour (L=10) .What is the output of sweaters?

• A)155 sweaters per day
• B)140 sweaters per day
• C)60 sweaters per day
• D)30 sweaters per day
• E)80 sweaters per day

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Definitions:

Net Income

The total profit of a company after subtracting all costs, expenses, and taxes from the total revenue.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a company's financial performance was negative.

Owner Withdrawal

The process by which an owner takes funds or assets out of the business for personal use, often referred to as "draws."

Income Statement

A financial document showing a company's income, expenses, and net profit over a specific period of time.