=+B. Suppose, as in exercise 12.8, that your production function is given by f1,2 5 A, a

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=+B. Suppose, as in exercise 12.8, that your production function is given by f1,2 5 A, a

(with 0 , a , 1)

and that the cost of hauling away grease is q. In addition, suppose now that each restaurant incurs a recurring fixed cost of F.

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