Question 3 A firm's production function is given by: F(L, K) = L3K3. You also know that the wage rate is $10, the price of capital is $20, and the price of the product is $120 a) In the short-run, capital is fixed at 8 units. How many units of Labor (L) should this firm hire? b) How much profit is the firm making in the short-run? c) Assuming that in the long-run both capital (K) and labor (L) are variable inputs, what is the optimal combination (profit-maximizing/cost-minimizing _* and K* to produce the same amount of output as in the short-run? d) What are the profits in the long-run?Question 3 A firm's production function is given by: F(L, K) = L3K3. You also know that the wage rate is $10, the price of capital is $20, and the price of the product is $120 a) In the short-run, capital is fixed at 8 units. How many units of Labor (L) should this firm hire? b) How much profit is the firm making in the short-run? c) Assuming that in the long-run both capital (K) and labor (L) are variable inputs, what is the optimal combination (profit-maximizing/cost-minimizing _* and K* to produce the same amount of output as in the short-run? d) What are the profits in the long-run