1 Krispy Kreme Krispy Kreme makes donuts using factory space and labor. Their production function is: D = S.51.5 Where D is the number of donuts produced, S is the amount of factory space, and L is the amount of labor. a. If factory space is fixed at S in the short run and ws is the price of factory space and wL is the price of labor, what is Krispy Kreme's short run cost minimization problem if they want to produce D donuts? b. What is Krispy Kreme's short run cost function? c. Is the marginal product of labor increasing, decreasing, or constant in the short run? Explain why we would expect this result in the short run as opposed to the long run