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In: Economics

A firm discovers that when it uses K units of capital and L units of labor...

A firm discovers that when it uses K units of capital and L units of labor it is able to

      produce q=4K^1/4 L^3/4 units of output.

Continue to assume that capital and labor can be hired at $40 per unit for labor and $10 for capital. In the long run if the firm produces 600 units of output, how much labor and capital will be used and what is the LR Total cost of production?

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Expert Solution

Rahul Sunny answered 2 years ago
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