Question: A competitive firm has the following production function: f(L, K) = A competitive firm has the following production function: ri(L, K) = milin(L) K). Suppose

A competitive firm has the following production function: f(L, K) =

A competitive firm has the following production function: ri(L, K) = milin(L) K). Suppose that in the short run, this firm must use 16 units of capital but can vary Its amountof labor freely. (a) Write down a formula that describes the marginal product of laborn the short run as a function of the amount of labor used. (b) Ifthe wage rate is w = $1 and the price of output is p = $4, how much labor will the firm demand in the short run? What if w = $1 and p = $10? (c) Write down an equation for the firm's short-run demand for labor as a function of w and p.

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