Question:medium
If a labour output function for laundry service is described by the following equation: \(O = (a^0 - 4L^0)^6\), where \(L\) denotes Labour and \(O\) denotes output. Then, output .........
If a labour output function for laundry service is described by the following equation: \(O = (a^0 - 4L^0)^6\), where \(L\) denotes Labour and \(O\) denotes output. Then, output .........
Updated On: Jul 16, 2026
- Increases as labor increases
- Decreases as labor increases
- Remains constant irrespective of the amount of labor
- None of the option is correct
Show Solution
The Correct Option is C
Solution and Explanation
Step 1: At \(L=1\): \(O=(1-4\times1)^{6}=(-3)^{6}=729\).
Step 2: At \(L=100\): \(100^{0}=1\) too, so \(O=(1-4\times1)^{6}=729\) again.
Step 3: Since both trials give the same output, \(O\) does not depend on \(L\).
\[ \boxed{\text{Output remains constant at }729} \]
Step 2: At \(L=100\): \(100^{0}=1\) too, so \(O=(1-4\times1)^{6}=729\) again.
Step 3: Since both trials give the same output, \(O\) does not depend on \(L\).
\[ \boxed{\text{Output remains constant at }729} \]
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