[6 marks] suppose a firm has the production function, , in the short-run with capital fixed at k : [1. 5 marks] derive an expression giving the cost-minimizing quantity of labor in terms of the level of output and the fixed level of capital in the short-run. K fixed, there is a unique l that is required to produce any q] There is no tangency condition to work with here. Simply solve the production function for k . K: [1. 5 marks] if the wage rate is w and the rental rate of capital is r , derive the short- run total cost function. K: [1. 5 marks] if labor should the firm employ to minimize total cost. To determine the optimal quantity of labor, plug the values for capital and output into the expression for labor derived in part a). and the firm wants to produce units, how much.
