The Production Function Is Y = 3KL

question 93

Multiple Choice

The production function is Y = 3KL. If there are 10 units of capital and 50 units of labor, aggregate output is:

• A) 500.
• B) 35010.
• C) 3500.
• D) 1500.

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Definitions:

Investee

The entity in which an investment is made, often subject to the influence or control of the investor through ownership of equity shares or other mechanisms.

Bargain Purchase

An acquisition where the purchase price is significantly less than the fair value of the net identifiable assets of the acquired company.

Deferred Tax Liability

A tax obligation that arises from temporary differences between the accounting and tax treatment of assets and liabilities which is expected to be settled in the future.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, also known as stockholders' equity or owner's equity.