Question: Suppose that a firms production function is given by the following relationship: Where Q = output L = labor input K = capital input a.

Suppose that a firm€™s production function is given by the following relationship:

Where Q = output
L = labor input
K = capital input
a. Determine the percentage increase in output if labor input is increased by 10 percent (assuming that capital input is held constant).
b. Determine the percentage increase in output if capital input is increased by 25 percent (assuming that labor input is held constant).
c. Determine the percentage increase in output if both labor and capital are increased by 20percent.

Q = 2.5V LK (i.e., Q = 2.515 K")

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