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A cob Douglas production function for a firm is given as Q=4L ½K½. The firm has also established that wage rate and interest paid on capital are $3 and $5 respectively for a production period. The firm intents to spend $200 million for the period on production cost. Compute the levels of capital and labor that will maximize output. What is the maximum output
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A cob Douglas production function for a firm is given as Q=4L ½K½. The firm has also established tha...
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