A firm uses two inputs, capital K and labor L, to produce output Q that can be sold at a price of $10. The production function is given by Q = F(K, L) = K1/2L1/2 In the short run, capital is fixed at 4 units and the wage rate is $5, 1. What type of production function is F(K, L) = K1/2L1/2 ? 2. Determine the marginal product of labor MPL as a function of labor L. 3. Determine the value of the marginal product of labor as a function of labor L. 4. How much labor should the firm employ to maximize profits? 5. Calculate the average product of labor, APL, when the level of capital is fixed at 16 units and the firm uses 9 units of labor. How does the average product of labor change when the firm uses 25 units of labor?
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