Suppose that you have estimated the following output function where L is labor and K is capital:

Y = 2K^1/4L^1/2

You know that the current price of labor is $10 and capital cost is $5 per per machine (capital).

You currently use 81 units of capital.

For #2a, the Output (Y) is 100

a)How many employees (L) do you need to hire to achieve your output goal?

b)Given a fixed level of capital (K=81), and a price of $100 per unit of output, what is the optimal number of employees?

c)Calculate the profit given the optimal number of employee given the answer in #3b

d)At What number of employees would you maximize output but not lose money