# Production Function

The production function tells us the quantity that the firm produces given its level of Capital (K) and Labor (L).

## Example

Ziggy runs a cookie factory. He has some ovens (K) and calls his grandma and his grandma's friends (L) to make cookies. 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: $$q \left( 3, 2 \right) = 100 \times 3 \times 2^2 = 1200$$

### Question

The cookie factory has the following production function KL^2

What is quantity of cookies produced with 1 ovens (K) and 1 grandmas (L)?

With 1 ovens (K) and 1 grandmas (L), the factory can produce $$q (1, 1) = 1\times1^2 = 1$$