Coosider the production function characterizing garri plant as: Q= 20L + 60k - L^2 - K^2 If total outlay for both capital, K =N50, and a Labour, L= N20, is N4,600. Find: a. The optimal quantity of K* and L* to be employed. b. Calculate the maximum possible output of garri that the plant can produce.
Coosider the production function characterizing garri plant as: Q= 20L + 60k - L^2 - K^2 If total outlay for both capital, K =N50, and a Labour, L= N20, is N4,600. Find: a. The optimal quantity of K* and L* to be employed. b. Calculate the maximum possible output of garri that the plant can produce.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.7P
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Coosider the production function characterizing garri plant as:
Q= 20L + 60k - L^2 - K^2
If total outlay for both capital, K =N50, and a Labour, L= N20, is N4,600. Find:
a. The optimal quantity of K* and L* to be employed.
b. Calculate the maximum possible output of garri that the plant can produce.
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