Question: 1 8 . Assume your production function is a Cobb - Douglas function with = 0 . 5 such that: Q = K . 5

18. Assume your production function is a Cobb-Douglas function with =0.5 such that: Q = K.5L.5.
a. If you are in the short run, you have 121 machines. How much production would you have if you had 121 workers?
b. Lets say you have a choice between three situations: 1. Add 48 machines; 2. Add 48 workers; 3. Add 23 machines and 23 workers. Which one of these three situations would lead to the largest gains in production?

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