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Badgett's Gadgets produces gadgets with the production function, y = card, , where a is the quantity of labor input, 2 is the quantity of
Badgett's Gadgets produces gadgets with the production function, y = card, ", where a is the quantity of labor input, 2 is the quantity of capital input, and y is the quantity of output. In the short run, Badgett's capital input is fixed at , = 8, and so its short run production function is y = x, 1/3 (8)1/3 = 217 The per-unit price of labor input is w1 = 20 and the per- unit price of capital input is w2 = 40. If Badgett's is a price taker in the output market and can sell as many gadgets as it wishes at a per-unit price of p , what is the lowest value of p at which Badgett's is able to earn positive profits in the short run? O Badgett's will earn positive profits for any p > 40. O Badgett's will earn positive profits for any p > 80. O Badgett's will earn positive profits for any p > 120. O Badgett's will earn positive profits for any p > 0
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