Question: The production function is F(L, K) = L^(1/2) K^(1/2) . In the short-run, the firm sells its output at a price of $10 per unit,

The production function is F(L, K) = L^(1/2) K^(1/2) . In the short-run, the firm sells its output at a price of $10 per unit, and can hire labor at a wage of $5 per unit. Capital is fixed at 25 units. The amount of labor that minimizes costs is:

a. L=1

b. L=2

c. L=10

d. None is correct

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