Production Function Calculation
The problem asks us to calculate the output level ($Q$) using a given production function and specific amounts of capital ($K$) and labour ($L$).
The production function is given by:
$ Q = 2 \cdot K^{1/3} \cdot L^{2/3} $
We are provided with the following input values:
- Capital ($K$): 8 units
- Labour ($L$): 27 units
Calculating Output Level
Substitute the given values of $K$ and $L$ into the production function:
$ Q = 2 \cdot (8)^{1/3} \cdot (27)^{2/3} $
Now, let's calculate the terms involving exponents:
- The cube root of 8, which is $8^{1/3}$, equals 2.
- To calculate $(27)^{2/3}$, we first find the cube root of 27 ($27^{1/3}$), which is 3. Then, we square this result: $3^2 = 9$.
Substitute these calculated values back into the equation for $Q$:
$ Q = 2 \cdot 2 \cdot 9 $
Performing the final multiplication:
$ Q = 4 \cdot 9 $
$ Q = 36 $
Therefore, the output level is 36 units when 8 units of capital and 27 units of labour are used.
Important Questions from Production Function
What is constant along an isoquant?
During the first stage of a total product curve, the total product is ______
Match List I with List II
LIST I
(Production Cost)
LIST II
(Underlying Meaning)
A.
Implicit Costs
I.
Change in the total cost per unit change in output.
B.
Marginal cost
II
Total increase in costs resulting from the implementation of a particular managerial decision.
C.
Incremental Cost
III.
Inputed value of inputs owned and used by the firm.
D.
Sunk Cost
IV.
The costs that are not affected by managerial decision.
Choose the correct answer from the options given below:
For the following two statements of Assertion (A) and Reasoning (R) suggest the correct code:
Assertion (A): Low initial price regarded as the principal means for entering into mass market for some new products.
Reasoning (R): Firms generally enter into production of new products with excess capacity of the plant initially.
Code:
Indicate the correct code from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined:
(i) Long run average cost curve under normal production function
(ii) Long run average cost curve under linearly homogeneous production function
(iii) Planning curve
(iv) Envelope curve
Choose the correct answer from the code given below :
