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A firm produces according to the following production function: Q = K^.5L^.5 where Q = units of output, K = units of capital, and L = units of labor. Suppose that in the short run K = 100. Moreover, the wage of labor is W = 5 and the price of the product is P = 10. What are the optimal units of labor?

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019
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Related questions

Consider the following production function

q= f(k,l)= kl, where k is capital and l is labor used. Assume the k is fixed at 2 units. Rental rate of capital is given by r and wage rate of labor is given by w.

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