Question: please help Question 2 (10 points) Consider a perfectly competitive firm with short run production function equal to q = 51/3. 21) Call the market
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Question 2 (10 points) Consider a perfectly competitive firm with short run production function equal to q = 51/3. 21) Call the market price P and the unit wage L and nd the expression of the rm's labor demand. 1)) Show that if the market price is P = 2 and the unit wage is w = 5 the rm should produce q* = 5 to maximize prot. (2) Now nd the rm's short run conditional demand for labor and short run total cost. d) Suppose the rm had fixed cost FC = 10. In the short run, should it stay open or shut down? Clearly justir your
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