Question #116159

Let the production for company A, Q= 20K^0.5L^0.5

a)The firm is currently producing 200 units of output per period using input rate of L= 4 and K= 25. Is this efficient input combination?Why or why not? If not determine the efficient input combination for producing an output rate of 200.

a)The firm is currently producing 200 units of output per period using input rate of L= 4 and K= 25. Is this efficient input combination?Why or why not? If not determine the efficient input combination for producing an output rate of 200.

Expert's answer

"200=200"

This combination is rational.

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