1. Suppose the hourly wage is $10 and the price of each unit of capital is $25.The price of output is constant at $50 per unit.The production function is f(E,K) = E^1/2K^1/2 . Note the marginal product of labor is

1. What is the value of the marginal product of labor? (Your answer should be a number)

1. What does the above answer mean? How do we interpret the marginal product of labor?

1. If the current capital stock is fixed at 1600 units, how much labor should the firm employ in the short run?