A profit maximizing firm produces output using capital,K,andlabour, L,in the followingproduction technology:

Y = 2*K^0.5*L^0.5

The cost function of the firm is: C = w*L + r*K

where r=0.7.

You are told thatthe firm employs L = 7 workers.

Find the optimal capital stock, K*.

(State your answer to 2 decimal places.)