the production function for the bottle water of Coca-Cola is given by q=10K0.5 L0.5 where q is the number of bottled water produced per day, KIs hours of machine time and L is the hours of labour inputs. Coca-Cola competiter voltic is using a production function q=10K0.6 K0.4. a. if both companies use the same amount of capital and labour, which will generate more out put? b. assume that capital is limited to 9 machine hours but labour is unlimited in supply. in which company is marginal product if labour greater? explain
the production function for the bottle water of Coca-Cola is given by q=10K0.5 L0.5 where q is the number of bottled water produced per day, KIs hours of machine time and L is the hours of labour inputs. Coca-Cola competiter voltic is using a production function q=10K0.6 K0.4. a. if both companies use the same amount of capital and labour, which will generate more out put? b. assume that capital is limited to 9 machine hours but labour is unlimited in supply. in which company is marginal product if labour greater? explain
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 5P
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the production function for the bottle water of Coca-Cola is given by q=10K0.5 L0.5 where q is the number of bottled water produced per day, KIs hours of machine time and L is the hours of labour inputs. Coca-Cola competiter voltic is using a production function
q=10K0.6 K0.4.
a. if both companies use the same amount of capital and labour, which will generate more out put?
b. assume that capital is limited to 9 machine hours but labour is unlimited in supply. in which company is marginal product if labour greater? explain
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