Short Answer
According to production engineers, the firm's production function gives the following outputs that can be produced from various combinations of labor and capital. The firm can purchase labor services (w) for $20 per unit and capital services (r) for $40 per unit.
-If input prices change to $40 per unit of labor (w = 40) and $20 per unit of capital (r = $20), what is the economically efficient input combination to produce 87 units? Explain.
Correct Answer:

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