A. Suppose that a firm's production function is Q = 2L^0.5K^0.5, Derive the isoquant associated...
Question:
A. Suppose that a firm's production function is {eq}Q = 2L^{0.5}K^{0.5}{/eq}, Derive the isoquant associated with Q = 12 units of output.
B. If L = 1, what must K be in order to produce Q = 12 units of output?
C. If L = 2, what must K be in order to produce Q = 12 units of output?
D. If L = 3, what must K be in order to produce Q = 12 units of output?
E. If L = 4, what must K be in order to produce Q = 12 units of output?
Isoquant:
In economics, the way outputs are produced using input are represented by a production function. Graphically, a production could be illustrated using isoquants, which traces all combinations of inputs that yield the same quantity of output.
Answer and Explanation: 1
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View this answerA. Putting the output level Q = 12 into the production yields the isoquant:
- {eq}2L^{0.5}K^{0.5} = 12{/eq}
- {eq}L^{0.5}K^{0.5} = 6{/eq}
B. If L = 1, to...
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Production Function in Economics: Definition, Formula & Example
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Chapter 11 / Lesson 27
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Learn about the production function. Read the production function definition in economics, learn the production function formula. Plus, see graphs and examples.
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