Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the price for the product is P=100. How many units of Labor should this firm hire in order to maximize profits/minimize costs in the short-run?
How many units of output does the firm produce in the short-run?
How much profits does this firm earn in the short-run?