Question
In: Economics
The production function of a firm is given by F(K, L)=KL. Assume that capital (K) is...
The production function of a firm is given by F(K, L)=KL. Assume that capital (K) is fixed at K=1 in the short run. Then the amount of labor (L) needed to produce 4 unit of output is equal to ___.
Solutions
Expert Solution
4
(F(K, L) = KL = Q
where Q = 4 and K = 1
So, 1*L = 4
So, L = 4/1
So, L = 4
Thus, 4 units of labor is required to produce 4 units of output in the short run when capital is fixed at 1.)
Rahul Sunny answered 2 years agoRelated Solutions
The production function of a firm is given by F(K, L)=KL. Assume that capital (K) is...
The production function of a firm is given by F(K, L)=KL. Assume
that capital (K) is fixed at K=1 in the short run. Then the amount
of labor (L) needed to produce 4 unit of output is equal to ___.
Group of answer choices 16 1 4 8 2
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