A perfectly competitive firm uses capital and labor to


A perfectly competitive firm uses capital and labor to produce output, in the short run, according to the following production function: Q=K1/2L1/2 1. Find the amount of capital and labor that will maximize profits 2.Show second order conditions for the maximum 3. Show graphically the profit maximizing level of inputs and provide an economic explanation for the equilibrium point 4. show mathematically that the equilibrium conditon is satisfied 5. What modifications to your model are necessary if we assume the firm is a monopoly?

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Business Economics: A perfectly competitive firm uses capital and labor to
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