Parul Asked a Question
May 11, 2022 1:22 pmpts 30 pts
uestion 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(LK) = 2L1/2 K1/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?
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  • Eduncle thankyou

    Dear Parul
    Greetings !

    Kindly refer to below image.

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