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8. Suppose a rm uses capital (K) and labor (L) to produce. The firm's production function is Q = ln(K) + 2]n(L) where Q is
8. Suppose a rm uses capital (K) and labor (L) to produce. The firm's production function is Q = ln(K) + 2]n(L) where Q is the output quantity; K is units of capital input; and L is number of workers. Let the wage rate of workers be m = 4, and the rental price of capital be r = 2. The output price is p = 1 per unit. The rm operates in competitive input and output markets. What is the prot maximizing combination of K and L? (a) K=L=0.5 (b) K=L=1 (c) K=L=2 (d) K=2,L=1 (e) K:l,L= (f) K:5,L=10 (g) K=10,L=5 (h) K=O,L=5 (i) K=1,L=4 (j) K=4,L=
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