Question: Question 2 15 pts Consider a rm which faces a downward-sloping demand curve, but buys labor and capital in competitive markets: that is, it chooses

Question 2 15 pts Consider a rm which faces a downward-sloping demand curve, but buys labor and capital in competitive markets: that is, it chooses its output price p, but pays the market wage w for each unit of labor and the market rental rate of capital r. It has the production function f(l., K) = 4LK and faces the demand curve 6109) = 47010'2 In the short run, its capital is xed at E = 3. In the Gradescope assignment, . derive the rm's optimal price and quantity as a function of the wage rate w. . derive and plot the rm's labor demand curve, L* (w). In the box below, indicate how many units of labor the rm would hire if the wage rate is w = 17. Round your answer to two decimal places

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