Suppose That a Firm Uses Both Labour (L)and Capital (K)as

question 4

Multiple Choice

Suppose that a firm uses both labour (L) and capital (K) as inputs.The firm's long-run production function is Q = F(L,K) = 5ÖLÖK.The firm has 100 units of capital.If the firm uses an efficient production method,how much output does it produce in the short run if it hires 25 workers?

• A) 250 units
• B) 1,250 units
• C) 2,500 units
• D) 50 units

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