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1. Suppose the hourly wage is $10 and the price of each unit of capital is $50. The price of output is constant at $25

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1. Suppose the hourly wage is $10 and the price of each unit of capital is $50. The price of output is constant at $25 per unit. The production function is fiE,K) = 95K yz, so that the marginal product of labor is MPE = (%)(K/E) V2. If the current capital stock is xed at 1,600 units, how much labor should the rm em ploy in the short run? How much prot will the rm earn

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