Please explain the solution for the following question (or solve the question and explain):

The question is already solved

h) (6 Points) A production is characterized by q = (L1/2 + K1/2)2. Let w = 10 and r = 1 and suppose in the short run capital is fixed at 4 units. What would be producer surplus if the market price is 5? Solution: L = [q1/2 -212 TC =10[q1/2 -2]2 + 4 MC = P =10 1-2 90.5 VC=10 qos -2} P =5 then q = 16. We know that in the short run fixed cost is sunk therefore: PS = TR - VC = 5x16 - 40 = 40