Question

A country has a production function such that output equals 40 √ K where K equals the amount of capital. If this country has 36 units of capital, what is its output?

Answer 1

To calculate the output using the production function output = 40 √ K with 36 units of capital, we find the square root of 36 (which is 6) and then multiply by 40. This gives us an output of 240 units.

Step-by-step explanation:

The student asks about calculating the output of a country given its production function and the amount of capital it possesses. The given production function is output = 40 √ K, where √ denotes the square root, and K is the amount of capital. With 36 units of capital, we substitute K in the production function to get the output.

To calculate the output:To find the output of the country, we can substitute the given value for capital (K) into the production function and solve for output (Q).

Given: K = 36 units

Output (Q) = 40 √ K

Output (Q) = 40 √ 36

Output (Q) = 40 √ 6

Output (Q) = 40 * 2.4495

Output (Q) = 97.98

The output of the country, when it has 36 units of capital, is approximately 97.98.

1. Take the square root of 36, which is 6.
2. Multiply this by 40 to get the output.

So, the output for this country would be 40 × 6 = 240 units