Suppose the production function is given as FKL K2 L2 then
Suppose the production function is given as F(K,L) = (K/2) * (L/2), then
A. 4 units of capital and 4 units of labor produce 1 unit of output
B. 4 units of capital and 4 units of labor produce 4 units of output
C. 4 units of capital and 4 units of labor produce a ½ unit of output
D. 4 units of capital and 4 units of labor produce 0 units of output
Solution
Option B. 4 units of output
Here F = (K/2)*(L/2)
= (4/2)*(4/2)
= 2*2
= 4
