Question #10Homework Answers
Taking natural log of production function
Q= 15 L^4/5K1/5
LnQ= ln(15) +4/5(ln(L)+1/5(ln(K)
Putting values of k & L in above equation
LnQ= 2.70+ 4/5*2.30+1/5*1.61
LnQ= 2..70+1.84+ 0.32.
LnQ= 4.86
From the result it has been observed that the growth rate of production will be 4.86 when labor is increased by 10 units and capital by 5 units
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Question #10
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