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2. (20 points) The firm's profit-maximizing problem can be tackled from the choice of output and input levels simultaneously as solving the following problem: max

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2. (20 points) The firm's profit-maximizing problem can be tackled from the choice of output and input levels simultaneously as solving the following problem: max *= pq- WL-vK s.t. q= /(L,K) q.L., K (1) Derive the first-order conditions for the problem. (2) Derive the indirect objective function and use the envelope theorem to show that the firm's behavioral equations can be derived simply by taking partial derivatives

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