Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
Let the production function of a firm be Q = 5L(square)K(square). Calculate output it employs 5 units of labour and 2 units of capital.
Options:
300
500
250
130
Correct Answer:
500
Explanation:
Putting L= 5 and K=2, we get 5*25*4 = 500.