An economy with production function Y = F(K) = the square root of K that has 400 units of capital...
Question:
An economy with production function Y = F(K) = the square root of K that has 400 units of capital will produce _____ units of output.
A. 1,600
B. 400
C. 40
D. 20
Production Function:
Production function in economics illustrates the relationship between the physical inputs used in the production process and the quantity of output. This provides an insight into the impact a change in factor inputs can have on the production process.
Answer and Explanation: 1
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View this answerThe correct answer is Option(D)
Given:
{eq}{\rm{K}} = 400 {/eq} and {eq}{\rm{Y}} = {\rm{F(K)}} = \sqrt {\rm{K}} {/eq}
One can find out how many...
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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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