Question: 1....--uu - '. L.-..--..u) A software rm's production function is Q = ELK? The price of labour services w is $40 and of capital services,

1...".--uu - '. L.-..--..u) A software rm's production function is Q = ELK? The price of labour services w is $40 and of capital services, r is $100 per unit. a) In the short run; the rm's capital is xed at K = 5. Compute the amount of labour that should he hired to produce Q = 100 units of output and shortrun total cost. b) How much money is the lm losing by not having the ability to choose its level of capital optimally? (Hint: You can round off your answers to the nearest whole number)

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