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    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 ?
    A Q1 = Q2 Correct Answer Incorrect Answer
    B Q1 > Q2 Correct Answer Incorrect Answer
    C Q1 < Q2 Correct Answer Incorrect Answer
    D All of these Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    If K = L, Q1 = Q2 = 10L = 10 K

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