In: Economics
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
Given that, production function = Q =F(K,L) = KL
Therefore, 4 = 1*L
or, L = 4
Answer: 4