When a firm uses K units of capital and L units of labor, it can produce Q units of output with the production function Q = √L + √K . Each unit of capital costs 2, and each unit of labor costs 1.
a) The level of K is fixed at 16 units. Suppose Q ≤ 4. What will the firm's short-run total cost be? (Hint: How much labor will the firm need?)
b) The level of K is fixed at 16 units. Suppose Q > 4. Find the equation of the firm's short-run total cost curve.