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Question 6 Suppose a rm has production function Q = 4 - Ll/2 - Kl/Z. In the short run, the rm is committed to rent
Question 6 Suppose a rm has production function Q = 4 - Ll/2 - Kl/Z. In the short run, the rm is committed to rent 4 units of capital but is free to choose the number of workers to hire. In the long run, the rm has a production target of 25 units of output. Suppose that w = $1, T=$1, andP=$2. a What is the optimal number of workers to hire in the short run? What is the optimal number of workers to hire in the long run? ) b) How much prot does the rm make in the short run? C) l d How much prot does the rm make in the long run
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