Question: 5. Exercise 7.7 Suppose that a firm's production function is given by the following relationship: Q=2.5LK (i.e., Q=2.5L0.5K0.5) where Q is output, L is labor

5. Exercise 7.7 Suppose that a firm's production function is given by the following relationship: Q=2.5LK (i.e., Q=2.5L0.5K0.5) where Q is output, L is labor input, and K is capital input. What is the percentage increase in output if labor input is increased by 10%? (Assume that capital input is held constant.) What is the percentage increase in output if capital input is increased by 25%? (Assume that labor input is held constant.) What is the the percentage increase in output if both labor and capital are increased by 10%?

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