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

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 capit

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