Answer Happy

Say you are the owner of an Amazon plant in Austin, Texas. You are using robots (K) that move packages around the floor of your facility, which you will rent at a rate (R) 20 dollars per hour. Recently, it has been declared that all the employees that work on the production line (L) in the factory will be paid a wage (W) 15 dollars an hour. The factory is looking to minimize costs so that it has 50 packages ready per hour (Q = 50). = a. Say the firm is operating in short-run and is using the new robots, such that K 25. The firm also has the following production function: Q = K:54:5 What is the optimal amount of labor the firm will hire? (5 pts) = b. Now presume the firm is operating in the long-run. How much capital will the firm hire in the long run? (10 pts) c. Explain if the firm is saving money in the long-run compared to the short-run. You don't have to calculate the amount the firm saves/pays more. (5 pts)