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Suppose That a Firm's Production Function Is Given by Q

Question 87

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Suppose that a firm's production function is given by Q = KL (MPK = L and MPL = K), where Q is quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively. Suppose that a firm's production function is given by Q = KL (MP<sub>K</sub> = L and MP<sub>L</sub> = K), where Q is quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively.

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a. Set blured image . blured image K = 1.5L (substitute into pro...

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