Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. The firm currently produces q units. If all inputs doubled, the new level of output will equal

Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. The firm currently produces q units. If all inputs doubled, the new level of output will equal




A) 2^0.4 q1.
B) 2^0.8 q1.
C) 0.8 q1.
D) 1.6 q1.


Answer: 2^0.8 q1.


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