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5. A rm has production function Y = KtLt, where Y is the quantity produced and K and L are the amount of capital and
5. A rm has production function Y = KtLt, where Y is the quantity produced and K and L are the amount of capital and labour used. In the short-run, the capital of the rm is xed at 4 unit and its cost is already paid for. The price of the good produced is 2, wage rate is 2 and the rental rate of capital is 1. What is the prot maximising amount of labor demanded by the rm in the short-run? (at: (b)L= (c)L=2 (d)L=1
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