A manufacturing plant produces widgets using two inputs: labor and capital . The production function is . If units of labor and units of capital are employed, what is total output ?

Answer and explanation

Correct answer: D.

  1. Step 1: Calculate square roots of inputs: , and . Compute output: . **Answer: . Why not the others:** multiplies by 20 twice, uses 16 directly, and uses 25 directly.

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