4. A price taking firm with production function F(K,L) = V/(KL) sets K = 1 and can't change it in short run. Letw be the
4. A price taking firm with production function F(K,L) = V/(KL) sets K = 1 and can't change it in short run. Letw be the wage rate. Cost curve is given by C=wL + r Will the firm shut down in the short run if price in the market is such that; 4.1 ) p > 400 4.2) p > 40 4.3) p > 1
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