The fir… Show more Suppose a firm in a competitive market has the following production function : q= L^0.5K^0.5 The firm has the following info: K=25, price of capital “r”=4 going wage rate “w”=50 1) This function exhibits constant returns to scale, violate the law of diminishing returns? 2) This firm sells in a competitive market at a price of $60 unit per unit. Find the profit maxiizing level of output, total revenues, total costs and economic profits. 3) Find this firm’s short run supply function 4) At what price and output level will this firm just break even? • Show less