For the rest of the problem, assume that we are in the long run with free entry in the market. What will be the long run equilibrium price in market(p*).At the price , how much will each firm products (q*).

1/1 point (graded) Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function F (K, L) = (K + 2L) " . Input prices are w = 2 and r = 3 for labor and capital respectively. It operates in a perfectly competitive environment facing a price p = $48, and uses an initial amount of capital K = 12 Compute the firm's short-run cost function. To verify that you have the correct short-run cost function, calculate the short-run cost of producing 8 units of ramen. C (8) = 536 536 Submit You have used 1 of 2 attempts Save Show answer Problem PS5.3.2 10/10 point (graded) What is the optimal output level for Kendall Square, Inc in the short run? What are its profits? 104 104 Submit You have used 1 of 2 attempts Save Show answer Problem PS5.3.3 1/1 point (graded) Compute Kendall Square Inc's long-run cost function. To verify that you have the correct long-run cost function, calculate the long-run cost of producing 8 units of ramen. C (8) = 512