Suppose that q=20 L=4? and K=25 is a point on the production function q=?f(L,K).

Question

Suppose that q=20 L=4? and K=25

is a point on the production function

q=?f(L,K).

Is it posssible for q=20 L =4 and K =26 to also be a point on this production? function? Why or why? not?

The combination q=20, L=44, and K=26

A. cannot be a point because we assume production functions are comprised of fixed inputs.

B. can be a point because we assume production functions exhibit diminishing returns.

C. can be a point because we assume production functions hold technology constant.

D. cannot be a point because we assume production functions are efficient.

E. cannot be a point because we assume production functions represent the short run.

Explanation / Answer

No it is not possible for that point cannot lie on the production function, as the production function gives the maximum number of goods that can be produced with a particular input combination.

D. cannot be a point because we assume production functions are efficient.

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