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21. Firm Kappa uses capital K and labor L to produce output q in a perfectly competitive market. The rm's production function is F(K,L) =

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21. Firm Kappa uses capital K and labor L to produce output q in a perfectly competitive market. The rm's production function is F(K,L) = 5K0-3L0-2 The prices of capital and labor are r = 6 and w=4, respectively. The rm can sell its output at a price P. To maximize its prot, Kappa will optimally choose to supply A q = 1.25P B q = 1.75P C q = 0.75P D q = 0.25P E q = P

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