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1.Norwich bakery uses labour and capital (i.e. ovens) to produce bread. Their production technology is represented by the following production function:q = L 1/4 K
1.Norwich bakery uses labour and capital (i.e. ovens) to produce bread. Their production technology is represented by the following production function:q = L 1/4 K 3/4 The unit price of labour is 2 and the unit price of capital is 6.
a)Suppose a customer wants q*loaves of bread. Use the Lagrangian method to find the amount of labour and capital the bakery should use to fulfil the order in the long-run.
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