Asap upvote guarantee QUESTION Suppose the production function is given by Y K1/

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QUESTION Suppose the production function is given by Y K1/4L3/4 and there are 10,000 workers and 16 machines available In the long run O the output produced will be 1,500 and the overall income created in the economy will be 2,000 the real wage rate will beand the overall income created in the economy will be 2,000 the output produced will be 2,000 and the overall income created in the economy will be 1,500 125 4 the real wage rate will beand the real income earned by all the workers combined will be 1,500 20

Explanation / Answer

Putting the values of L = 10,000 and K = 16 in the given production function we get,

Y = (10,000)3/4 * 161/4

or Y = 1000 * 2 = 2000 units.

Hence the third option the output produced will be 2000 and the overall income created in the econoomy will be 1500.

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