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3. (6 points) A price-taking firm only uses capital to produce. Its profit maximization problem is 111;,2{1_[ (k,p,r)=pf (k) rk where p is sales price,

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3. (6 points) A price-taking firm only uses capital to produce. Its profit maximization problem is 111;\\,2{1_[ (k,p,r)=pf (k) rk where p is sales price, k is capital, and r is the cost of capital. Its technology f(k) has the expected shape: f'(k) > 0, f\" (k)

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