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22) Dajanae's clothing firm uses technology that can be expressed in the following production function q=F (K, L)-0.25 K L' The price of a unit

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22) Dajanae's clothing firm uses technology that can be expressed in the following production function q=F (K, L)-0.25 K L' The price of a unit of labour (w) =10 and the price of a unit of capital (r) -5. Capital is fixed in the short run such that K=S. a) Define the function labour as a function of quantity (q). i.e. L(q) (2 marks) b) Define and compute the following as function of quantity L (q) i. the short-run fixed costs (SRFC) and short run average fixed cost (SRAFC) for this firm. (2 marks) ii. the short-run variable costs (SRVC) and short run average variable cost function (SRAVC). (2 marks) c) Determine the combination of labour and capital that minimizes the cost of producing any given output. (6 marks)

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