Economics: Other Economics Problems – #416


Question: The output at a certain factory \(Q\left( K,L \right)=120{{K}^{2/3}}{{L}^{1/3}}\) units, where K is the capital investment measured in units of $1000 and L the size of the labor force measured in worker hours.

(a) Compute the output if the capital investment is $125,000 and the size of the labor force is 1,331 workers.

(b) What will happen to the output in part (b) if both the level of capital investment and the size of the labor force are cut in half

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