Question: Consider the following short-run production function: .Suppose that the output of the firm can be sold at a price of $10.Also suppose that labor can

Consider the following short-run production function: .Suppose that the output of the firm can be sold at a price of $10.Also suppose that labor can be hired for $20.

a)Find the marginal revenue product function.

b)Find the amount of labor that should be hired to maximize short run profits.

c)Suppose that the productivity of your workers increases.What happens to the demand for labor hours?For illustration, suppose that the productivity increase changes the short run production function to .Find how many workers are hired now.

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