Statistics Solutions

[Solved] The production function of computers is given by DISK, Inc. is given by Q_D=10K^0.5L^0.5 where q is the number for computers produced per day,

Question: The production function of computers is given by DISK, Inc. is given by

\[{{Q}_{D}}=10{{K}^{0.5}}{{L}^{0.5}}\]

where q is the number for computers produced per day, K is the hours of machine time and L is the hours of labor

DISK competitor's FLOPPY is using the function

\[{{Q}_{F}}=10{{K}^{0.6}}{{L}^{0.4}}\]
  1. If both companies use the same output of capital labor which company will generate more output?
  2. Assume that capital is limited to 9 machine hours but labor is unlimited in supply. In which company is the marginal product of labor greater? Explain.

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