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3-10. Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50

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3-10. Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function is f(E, K) = E"2 K 12 so that the marginal product of labor is MPE = (1/2) (KIE) "? If the current capital stock is fixed at 1,600 units, how much labor should the firm employ in the short run? How much profit will the firm earn

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