Question

A firm makes two goods, A and B, with production functions QA-2K1(LA)2 and Q 16KB+4LB. The firm has a fixed total supply of capital of 1 unit, and it can hire labor at P $10 for the first 5 hours, and for the overtime rate of P $20 after that, up to 10 hours. Output prices are PA-S2 and p#2 $1. P4 i Sothat capital's marginal revenue product is equal for A and B, what must LA be? ii How much labor should the firm hire to work on B? i If K1 and LA and L8 are as in parts i) and ii), what is the overall revenue from Q4 and Q? iv) I K0, and LA and L are as in parts i) and ii), what is the overall revenue from v) What is the profit contribution (revenue minus labor cost), based on iii) and iv)?