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 1 year ago

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