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Production theory and estimation

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Suppose that the production function for a commodity is given by
Q= 10/LK where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital.

(a) Caculate Q when L=1 and K=1, and L=2 and K=2, then compare. 12 (b), Given K=1, show the change in Q if L changes from 1 to 2, and 2 to 3.

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Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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