=+g. How much labor and capital will this firm demand if a 5 100, b 5 g

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=+g. How much labor and capital will this firm demand if a 5 100, b 5 g 5 5 5 p, w 5 20 5 r?

(It might be easiest to type the solutions you have derived into an Excel spreadsheet in which you can set the parameters of the problem.) How much output will the firm produce? How does your answer change if r falls to r 5 10? How much profit does the firm make in the two cases.

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