Example
Ziggy runs a cookie factory. He has some ovens (K) and calls his grandma and his grandma's friends to make cookies (L). Assume that the production function is
$$ q \left( K, L \right) = 100 K L^2 $$With `3` ovens and `2` grandmas, the factory produces 1,200 cookies:
$$ q \left( 3, 2 \right) = 100 \times 3 \times 2^2 = 1,200 $$Question
The cookie factory has the following production function `KL^3`
What is quantity of cookies produced with 1 ovens (K) and 2 grandmas (L)?
With 1 ovens (K) and 2 grandmas (L), the factory can produce
$$ q (1, 2) = 1\times2^3 = 8 $$