Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | Let the production function of a firm be
Let the production function of a firm be Q=5L1/2K1/2Q=5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of LL and 100 units of KK.
Q= L K = 5 ................ Equation (1)
L = 100 units of labour
K = 100 units of capital
Putting these values in equation (1)
Q = 5 (100) (100)
= 5(10) (10)
= 500 units
Thus, the maximum possible output that he firm can produce is 500
units.
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