Suppose a firm uses skilled and unskilled workers to produce. The firm’s production function is
Q = H ln(L)
where Q is the output quantity; H is the number of skilled workers; and L is the number of unskilled workers. Let the wage rates of skilled and unskilled workers be wh = 2 and wl = 1 respectively. The output price is p = 1 per unit. The firm operates in competitive input and output markets. What is the profit maximizing combination of H and L?
(a) H=0,L=1 (b) H=0,L=2
(c) H=L=e^2(d) H =L=ln(2)
(e)H=L=√2
(f) H = 2, L = 1 (g) H=1,L=2 (h) H=4,L=2