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Two garments factories produce output according to the same production function q=k4 where qis output, kis capital and lis labour. However, Factory 1 uses

 

Two garments factories produce output according to the same production function q=k4 where qis output, kis capital and lis labour. However, Factory 1 uses more labour than Factory 2 so that = 1600 and 1=1000. The total amount of capital (i.e. the number of machines) available is 200. Find (a) The outputs of each of the two factories in terms of capital. (b)The outputs of each of the two factories if the available capital is divided equally between them. (c) The outputs of each of the two factories if the available capital is divided efficiently between them.

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