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give answer in 2 step with explanation at the end of each step and final answer at the end:Suppose that a firm's production function is: , Q Ek 1010505 a=1oLK A A CEN SR HH os MP, = 5057105 2 0.501 EEE L fo | AY I I and g EE Wh 0s 3 “IH 5 ENCE rd “The cost of a unit of labor, w, is $50 and the cost of a unit of capital, r is $50. < \ Isoquants for output of 140 and 280 are illustrated in the figure to the right. B N N Initially, the firm is producing 140 units of output and has determined that PNP TH te ce Sh INGE LT APY 9) Suppose now that the firm wants to increase output to 280 units. If capital is fixed in Ss em = = EE 1 the short run, how much labor will the firm require? EEE ERE EE nits of labor “The firm will now require [_] units of labor. (Enter your response rounded to two decimal places.)

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give answer in 2 step with explanation at the end of each step and final answer at the end:Uploaded ImageSuppose that a firm's production function is: , Q Ek 1010505 a=1oLK A A CEN SR HH os MP, = 5057105 2 0.501 EEE L fo | AY I I and g EE Wh 0s 3 “IH 5 ENCE rd “The cost of a unit of labor, w, is $50 and the cost of a unit of capital, r is $50. < \ Isoquants for output of 140 and 280 are illustrated in the figure to the right. B N N Initially, the firm is producing 140 units of output and has determined that PNP TH te ce Sh INGE LT APY 9) Suppose now that the firm wants to increase output to 280 units. If capital is fixed in Ss em = = EE 1 the short run, how much labor will the firm require? EEE ERE EE nits of labor “The firm will now require [_] units of labor. (Enter your response rounded to two decimal places.)

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Asked by: Firdos
Created at: 2025-12-07 07:12:22

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Let's solve it step by step: --- ## **Step 1: Set up the production function with given values** The production function is: \[ q = 10L^{.5}K^{.5} \] - Initial output \( q = 140 \) - Cost-minimizing quantities: \( L = 14 \), \( K = 14 \) Let's **verify** this with the production function: \[ 140 = 10 \times (14^{.5}) \times (14^{.5}) \\ 140 = 10 \times 14 = 140 \text{ (Correct)} \] --- ## **Step 2: Find required labor for new output (holding capital constant)** Now, \( q = 280 \) and \( K \) remains at 14 (fixed in the short run). Plug into the production function: \[ 280 = 10L^{.5}(14^{.5}) \] \[ 280 = 10L^{.5} \times 3.7417 \] \[ 280 = 37.417 L^{.5} \] \[ L^{.5} = \frac{280}{37.417} = 7.486 \] \[ L = (7.486)^2 = 56.04 \] **Explanation:** We set capital at 14, substitute into the production function, solve for \( L \), and square to get the required amount. --- ## **Final Answer** \[ \boxed{56.04} \] The firm will now require **56.04 units of labor** to produce 280 units of output, holding capital fixed at 14 units.

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