Question

For the production function Q = 20k0.5L0.5 determine four combination of capital and labor that will produce 100 and 200 units of output. plot these points on a graph and use them to sketch the 100- and 200- units isoquants.

Answer 1

Q = 20k^0.5L^0.5.
Four combination of capital and labor that will produce 100 and 200 units of output are:
Q = 100:
1) k = 25, L = 1,
2) k = 6.25, L = 4,
3) k = 4, L = 6.25,
4) k = 1, L = 25.
Q = 200:
1) k = 100, L = 1,
2) k = 25, L = 4,
3) k = 4, L = 25,
4) k = 1, L = 100.