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:

Mental Age

Mental age is a measure of an individual's mental aptitude based on their performance on a standardized test, compared to the average performance of others in their age group.

Intelligence Quotient

is a measure of a person's cognitive abilities in relation to others, typically assessed through standardized tests that evaluate various aspects of intelligence.

Chronological Age

The actual age of an individual measured in years from the date of birth.

Mental Set

A frame of mind involving an established way of thinking, which can sometimes inhibit the ability to solve new problems.