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5. {:12 points) Some rm produces output with a technology characterized by a diminishing marginal rate of technical substitution of labor for capital. It is

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5. {:12 points) Some rm produces output with a technology characterized by a diminishing marginal rate of technical substitution of labor for capital. It is required to produce a targeted amount of output, which does not change in this problem. 1When faced with input prices W] and r1, the rm chooses the basket of inputs (LA, KA) (at spoint A), and it lumrs the total cost on some isocost ICl. When the factor prices change to W2 and r2, the rm's choice is at basket B with (LB, KB), on some isocost 1C2. It is known that LA

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