# The table shows production data for three quantities of capital. Suppose that each unit of...

## Question:

The table shows production data for three quantities of capital. Suppose that each unit of capital costs $1,000 and each unit of labor costs $200.

Complete the table.

Labor, L | Capital, K | Output, Q | Average total cost, ATC | Capital, K | Output, Q | Average total cost, ATC | Capital, K | Output, Q | Average total cost, ATC |

0 | 2 | 0 | X | 3 | 0 | X | 4 | 0 | X |

1 | 2 | 100 | $ | 3 | 160 | $ | 4 | 210 | $ |

2 | 2 | 800 | $ | 3 | 1200 | $ | 4 | 1350 | $ |

3 | 2 | 1300 | $ | 3 | 1800 | $ | 4 | 2200 | $ |

4 | 2 | 1475 | $ | 3 | 2100 | $ | 4 | 2600 | $ |

5 | 2 | 1500 | $ | 3 | 2200 | $ | 4 | 2700 | $ |

6 | 2 | 1510 | $ | 3 | 2220 | $ | 4 | 2710 | $ |

## Cobb-Douglas Production Function:

Cobb and Douglas defined a production function that shows how capital and labor combined in different proportions produce different levels of output.

## Answer and Explanation: 1

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Labor, L | Capital, K | Output, Q | Average total cost, ATC | Capital, K | Output, Q | Average total cost, ATC | Capital, K | Output, Q | Average total cost, ATC |

0 | 2 | 0 | X | 3 | ... |

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The Cobb Douglas Production Function: Definition, Formula & Example

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Learn the definition of a production function in economics, understand the definition of a Cobb-Douglas production function and its formula, and explore some examples of Cobb-Douglas production function.

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