Question
Production function of two companies producing floppy
and discs was given. Q1 = 10L^0.5 K^0.5 Q2 = 10L^0.6K^0.4 Which of the following is correct if both use same amount of capital and labour ?Solution
If K = L, Q1 = Q2 = 10L = 10 K
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25, 41, 73, 89, 121,?
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Conclusion:
i) Company X has the possibility of resuming producti...
