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2. (25 points) ChocolateRUs produces chocolate santas using the production function: g = 2K Li Where K is the amount of capital and L is

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2. (25 points) ChocolateRUs produces chocolate santas using the production function: g = 2K Li Where K is the amount of capital and L is the amount of labor used in the process. Assume that the price of capital is r and the wage rate is w. (a) Find the rm's longrun cost function, C(w, r, g). (b) Suppose the capital is xed at 10 units in the shortrun. What is the rm's short run cost function? Calculate marginal cost, average variable cost, and average xed cost

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