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Business, 26.10.2020 17:00 amir6658

Suppose a firm with a production function Q = KL (where MPL = K and MPK = L) is producing 125 units of output by using 5 workers and 25 units of capital. The wage rate (W) per worker is $10 and the rental per unit of capital (R) is $2. What is the firm’s long-run average total cost, and what will it be if output falls to 45 units?

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Suppose a firm with a production function Q = KL (where MPL = K and MPK = L) is producing 125 units...
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