A firm has production function f (L, K, M) = L+K2+4M, where L is units of labor, K is units of capital, and M is units of materials. If this firm uses 100 units of labor, 40 units of capital, and 100 units of materials, what is the maximal number of units that they can produce? A firm has production function f (L, K, M) = L+K2+4M, where L is units of labor, K is units of capital, and M is units of materials. If this firm uses 100 units of labor, 40 units of capital, and 100 units of materials, what is the maximal number of units that they can produce?

Question

Business

Henry Mendoza

27 December, 23:49

A firm has production function f (L, K, M) = L+K2+4M, where L is units of labor, K is units of capital, and M is units of materials. If this firm uses 100 units of labor, 40 units of capital, and 100 units of materials, what is the maximal number of units that they can produce? A firm has production function f (L, K, M) = L+K2+4M, where L is units of labor, K is units of capital, and M is units of materials. If this firm uses 100 units of labor, 40 units of capital, and 100 units of materials, what is the maximal number of units that they can produce?

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Answers (1)

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Kobe Fernandez · Answer 1

1800

Explanation:

Production Function is the relationship between production inputs & production outputs, given technology. It shows maximum output that can be produced with minimum inputs, given technology.

Production Function: f (L, K, M) = L + K^2 + 4M

K = 40, L = 100, M = 100

Production = 100 + (40) ^2 + 100

100 + 1600 + 100

= 1800