Suppose a Production Function for a Firm Takes the Following

question 18

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

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Definitions:

Expected Rate

In finance, it typically refers to the predicted average rate of return on an investment over a specified period.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion of a set of data values around the mean (average).

Risk-Free Asset

A financial instrument that is considered to have no risk of financial loss and typically features a guaranteed rate of return, such as government bonds.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value in the set differs from the mean.