How many units of output will the firm produce?

Q= number of units of ou Show more The Cobb Douglas production function takes the generic form: Q=AL b K c Where: Q= number of units of output produced. A= constant L= units of labor used K= units of captial used. bc = coefficients that together add up to 1 i.e. b+c=1 On the spreadsheet the Cobb Douglas production function starts off with these values: A=1 L=4 K=4 b=.5 and c=.5 If these are not the values in the spreadsheet change the values of ALK b and C to these values before starting the quiz. Question 1 Suppose the firm uses 4 units of capital and 4 units of labor. How many units of output will the firm produce? Compute the answer using the spreadsheet and inputing the proper values or reading the proper values off the approprate cell. Suppose the firm increased the amount of labor to 25. How many units of output would the firm produce? Show less

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