Question: Suppose that the production function is F ( L, K ) = (KL) . The input prices are w= 1, r= 1. The output price

Suppose that the production function is F ( L, K ) = (KL) . The input prices are w= 1, r= 1. The output price is P 24 Consider the short-run, where capital is fixed at K 20 1) Find the short-run cost function 2 . state the short-run Profit maximization problem given your cost function Sound in part I ( by choosing the output 2 ) 3 would the firm shut down if he is too large? 4 . Show that if I increases the firm will produce more/less/ the same optimally in the Short-run

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