Question: The production function for a competitive firm is Q, K denotes the quantity of capital, L denotes the quantity of labor, sqrtK denotes the square
The production function for a competitive firm is Q, K denotes the quantity of capital, L denotes the quantity of labor, sqrtK denotes the square root of K, sqrtL denotes the square root of L. Q equals to the product of sqrtK and sqrtL. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit. The profit maximizing quantity of labor is
Select one:
a.2 over 5.
b.None of the answers are correct.
c.10.
d.1.
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