Question: Suppose the production function is given by Q = 10 K0.5 L0.5, and K = 25 and L=100. If labor input increases by 10 percent,

Suppose the production function is given by Q = 10 K0.5 L0.5, and K = 25 and L=100. If labor input increases by 10 percent, we expect output?

a. rise by 5 percent.

b. to increase by about 25.

c. to equal about 525.

d. all of the above.

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