1. A company has the following production function: Q: lKme'. The price of K and L are r=$40 and w=$10, respectively. a. Assuming K is
1. A company has the following production function: Q: lKme'. The price of K and L are r=$40 and w=$10, respectively. a. Assuming K is fixed at Kn, obtain the short-run cost function for this firm. b. Obtain the long-run cost function for this firm. c. Does the firm's variable cost depend on its choice of fixed input? Explain why or why not
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