1 1 09. Consider a production function of the form y=AK2 L2 where y is units of output, K is units of capital and L is the number of people employed. If A = 50 and K = 100, how much additional output will be produced if employment increases from 16 to 64? a. Output will increase by 24,000 units b. Output will increase fourfold. c. Output will increase by 160% d. Output will double

1 1 09. Consider a production function of the form y=AK2 L2 where y is units of output, K is units of capital and L is the number of people employed. If A = 50 and K = 100, how much additional output will be produced if employment increases from 16 to 64? a. Output will increase by 24,000 units b. Output will increase fourfold. c. Output will increase by 160% d. Output will double

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section18.4: The Other Factors Of Production: Land And Capital

Problem 4QQ

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