The production function of producing Tomato is given as follows:
¼ ⅓
Q = 150K L
Where, Q: represents the output
K: represents capital
L: represents Labor
If capital and labor used are 81 and 125 respectively, what is the total output of Tomato that can be produced?
- A factory produces plastic bags according to the following production function:
Y = F( X1, X2, X3 ,X4)
Explain the relationship between these variables
a. Determine the dependent and independent variables
b. Identify the inputs which can be used in the production function
- Helen is received offer to have a job as a professional fitness trainer or a teacher. She will earn $50,000 a year as a fitness trainer or $36,000 a year as a teacher. If she chooses to be a fitness trainer.
What is the opportunity cost for Helen?
What is the economic rent?
- What is the opportunity cost of the following economic terms:
- Land
- Capital
- Labor
- Entrepreneurs
- Managers
- Holding money
Sample Solution