Suppose the production function for a certain good is a simple Cobb-Douglas function without a technology component.

in the short run K is fixed at 25.

1- What’s the short run production function?

2- if capital rents for v=$20 what’s the STC function?

3- What’s the SMC function?

4- Given this SMC how much will this firm produce at a price of $40?

5- How many labor hours will hired per week?

6-If w=$10 what’s the total cost, total revenue, and profit?

7- If price falls to $20 how much will the company produce?

8- What’s the total cost, total revenue, and profit at this level?

9- Should they close? Why or why not?