9. Consider a perfectly competitive firm that produces output from labor and capital under the following...

 

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9. Consider a perfectly competitive firm that produces output from labor and capital under the following conditions: Y = 40K1/2 + 72L1/2 P = $2 W = $8 R = $10 a. Suppose that the firm has decided to employ 100 units of labor and 64 units of capital. What will its profit be at those employment levels? b. What equation describes the profit-maximizing quantity of labor for this firm? c. Is the profit-maximizing quantity of labor greater than, equal to, or less than 100? Explain. 9. Consider a perfectly competitive firm that produces output from labor and capital under the following conditions: Y = 40K1/2 + 72L1/2 P = $2 W = $8 R = $10 a. Suppose that the firm has decided to employ 100 units of labor and 64 units of capital. What will its profit be at those employment levels? b. What equation describes the profit-maximizing quantity of labor for this firm? c. Is the profit-maximizing quantity of labor greater than, equal to, or less than 100? Explain.