Question: A firm has a Cobb-Douglas production function given as q=L0.6K0.2 Suppose that in the Short run, the mill's capital (K) is fixed at 32

A firm has a Cobb-Douglas production function given as q=L0.6K0.2 Suppose that in the Short run, the mill's

A firm has a Cobb-Douglas production function given as q=L0.6K0.2 Suppose that in the Short run, the mill's capital (K) is fixed at 32 units and that it can only increase output q by increasing the amount of labour (L) Determine the firms' SR production function If the firms' competitive output price is $50 find its labour demand curve How many workers does the firm hire if the wage rate is $15? What is the MRP, between the 31st and 32nd worker who is hired at the competitive price? 10

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