Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Based in info and your answer in question 1 What is labor productivity
![**Essay Question 1(a)**
The aggregate production function is \( Y = 2KL \). There are 36 units of capital and 25 units of labor. What is the aggregate output?
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Note: The equation \( Y = 2KL \) represents the production function where \( Y \) is the output, \( K \) is the capital, and \( L \) is the labor. To find the aggregate output, substitute the given values into the equation:
\[ Y = 2 \times 36 \times 25 \]
\[ Y = 1800 \]
Therefore, the aggregate output is 1800 units.
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There are no graphs or diagrams accompanying this question.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49529d2a-88a8-46ad-bbba-6d4044d677b4%2Fa4951899-a512-4eb7-9770-e785429f5f40%2F3t63cw5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Essay Question 1(a)**
The aggregate production function is \( Y = 2KL \). There are 36 units of capital and 25 units of labor. What is the aggregate output?
---
Note: The equation \( Y = 2KL \) represents the production function where \( Y \) is the output, \( K \) is the capital, and \( L \) is the labor. To find the aggregate output, substitute the given values into the equation:
\[ Y = 2 \times 36 \times 25 \]
\[ Y = 1800 \]
Therefore, the aggregate output is 1800 units.
---
There are no graphs or diagrams accompanying this question.
Expert Solution
Step 1
Production function shows the relationship between input and output.
Input comprises of two things : - Capital and labor
Capital is fixed
Labor is variable
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