Answer:
(a) Given, or
where K is constant and K=25 (Short run situation)
Thus,
and
Now using the above formulas we get the following results,
(b) To maximize output the firm should hire 12 units of labor as seen in the above table that when L=12 the total output q=156.
(c) Graphs
1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L?...
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