The production function for the personal computers of$$ DISK, Inc., is given by

q equals $10$ Upper K Superscript $0\mathrm{.}5$ Baseline Upper L Superscript $0\mathrm{.}5$q$=10$K$0\mathrm{.}5$L$0\mathrm{.}5$

where q is the number of computers produced per$$ day, K is hours of machine$$ time, and L is hours of labor input.$$ DISK's competitor,$$ FLOPPY, Inc., is using the production function

q equals $10$ Upper K Superscript $0\mathrm{.}6$ Baseline Upper L Superscript $0\mathrm{.}4$q$=10$K$0\mathrm{.}6$L$0\mathrm{.}4.$

Part $2$

If both companies use the same amounts of capital and labor and

Upper K greater than Upper LK$>$L$,$

which firm will generate more$$ output?

The output of

FLOPPY $>$ DISK

$.$

Part $3$

Assume that capital is limited to $9$ machine$$ hours, but labor is unlimited in supply. In which company is the marginal product of labor$$ greater? Explain.

Part $4$

A$.$

DISK has the greater marginal product of labor.

B$.$

FLOPPY has the greater marginal product of labor when labor is greater than $1.$

C$.$

FLOPPY has the greater marginal product of labor.

D$.$

DISK has the greater marginal product of labor when labor is greater than $1.$