A firm's production function is given by: ( F(L, K)=L^{ prime} K^{ prime} ). You also know that the wage rate is ( $ 1 ), the price of capital is ( $ 1 ), and the price of the product is ( $ 54 ). a) ( 5 point the price of the product is ( $ 54 ). hire? b) (2 points) How much output is the firm producing in the short-run? c) (2 poin

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A firm's production function is given by:  ( F(L, K)=L^{ prime} K^{ prime}  ). You also know that the wage rate is  (  $ 1  ), the price of capital is  (  $ 1  ), and the price of the product is  (  $ 54  ). a) ( 5 point the price of the product is  (  $ 54  ). hire? b) (2 points) How much output is the firm producing in the short-run?  c) (2 points) How much profit is the firm making in the short-run? d) (5 points) Now suppose you are in the long-run. How much Labor and Capital does the firm employ in order to maximize profits and produce the same level of output as in the short-run? e) (2points) How much are profits in the long-run?

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(Solved): A firm's production function is given by: \( F(L, K)=L^{\prime} K^{\prime} \). You also know that t ...

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