Suppose a Production Function for a Firm Takes the Following

question 58

Multiple Choice

Suppose a production function for a firm takes the following algebraic form: Q = (0.25) K × (1.5) L²,where Q is the output of garage doors produced per month.Now suppose the firm is operating with 10 units of capital (K = 10) and 8 units of labour (L = 8) .What is the output of garage doors per month?

• A)24
• B)240
• C)300
• D)2400
• E)3000

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Definitions:

Economic Decision

A choice made by individuals, businesses, or governments affecting resource allocation or consumption.

Central Planners

Individuals or authorities responsible for making decisions about the economy of a country, especially in a centrally planned economy where the government controls the factors of production.

Public Ownership

Public Ownership refers to the possession of corporations, assets, or industries by the government rather than private individuals or organizations.

Pure Capitalism

An economic system characterized by private ownership of resources and businesses, with minimal government intervention in economic activities.