Question 49

If a labour output function for laundry service is described by the following equation: $$O = (a^\circ - 4L^\circ)^6$$, where L denotes Labour and O denotes output. Then, output ..........

Solution

In question it is mentioned L denotes labor.

Here $$a^0$$ and $$L^0$$ are both constants, since they are not being mentioned as variables.

Also, the equation does not have "L" term in it

So, the output is independent of Labour L.

C is the correct answer.

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