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The production function of the personal computers for DISK Company is given by
Q = 10 KL
where Q is the number of computers produced per day, K s the hours of machine time, and L is hours of labor input. Disk's competitor, FLOPPY Company is using the production function
Q = 10 K.6 L.4.
a) If both companies use equal amounts of capital and labor, which will generate more output?
b) Assume that capital is 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor the greater? Explain.
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