The **total output (Yp)** is a function of the amount of **Labor (L)**, **Capital (K)**, and **Technology (A)** you have available.

Let's apply this with the following scenario:

**Question:** You’ve determined the Labor Demand equation for your dog food factory is W = 100 – Ld, and the Labor Supply equation is W = 73 + 2Ls. What is the equilibrium value for L (Labor)? Additionally, Capital Stock from last year was 129, gross investments were 25, and depreciation was 10. What is the value for K (Capital)? Utilizing these variables, determine the total output (Yp), given that A is 15.

Yp = A * L^{½} * K^{½}

Yp = 15 * L^{½} * K^{½}

Yp = 15 * 9^{½} * K^{½}

Yp = 15 * 9^{½} * 144^{½}

This results in a total output (Yp) of 540!

Yp = 15 * 9^{½} * 144^{½}

Yp = 15 * 3 * 12

Yp = 540

This means that based on our amount of labor, capital, and technology available, we can product 540 units of dog food.

This concept does not only apply to small-scale production, it can also be applied to much larger scales—such as nations and countries. Using this same framework, in theory, we can determine the potential output of a large economy by utilizing a production function.