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Scenario 2 A firm has the following production function: f(E, K) = EiKi Which means they have the following marginal product of labor: MPE= (E)
Scenario 2 A firm has the following production function: f(E, K) = EiKi Which means they have the following marginal product of labor: MPE= (E) Suppose the firm has A units of K (capital), that labor costs $w per hour, capital cost $7 per unit, and each unit of output can be sold for $p. D Question 3 4 pts Refer to Scenario 2. Suppose: K =1,600 w =57 r =28 p =100 How many workers (units of labor) should the firm employ in the short run? (Round to nearest hundredth) 1,231.15 D Question 4 4 pts Refer to Scenario 2. Suppose now that: K =1,600 W =44 r =25 p =100 What is the firm's maximum short run profit? (Round to the nearest hundredth) 29,034,819
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