# A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production function Q=LK. The wage (w) is $10 and the rate of capital (r)

A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production

function Q=LK. The wage (w) is $10 and the rate of capital (r) is $20. The target number of rocking

chairs to produce is 800.

It is the short run and the amount of K is fixed at 5. the optimal values for L* and K* in the

short run?

Enter the number for the the optimal amount of L in the short run?

Enter the number for the the "optimal" amount of K in the short run?

Question 12

1 pts

You just calculated the long-run and short-run optimal inputs for a situation. do you expect

to be true about the short-run total cost relative to the long-run total cost at each optimal

solutions.

O The short-run total cost should be equal to the long-run total cost

O The short-run total cost should be greater than the long-run total cost

The short-run total cost should be less than the long-run total cost

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