4. Consider the model of a firm that produces final goods using R&D and components as inputs,...
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4. Consider the model of a firm that produces final goods using R&D and components as inputs, with cost data as follows:
Components: Total costs of production = PC · QC = 200 Earnings of high-skilled labor = WH · HC = 20 Earnings of low-skilled labor = WL · LC = 80
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