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A company has a fixed 32 unit of capital the production function of the company is Q=45K^0.45 L^0.55. Both the output and input markets are
A company has a fixed 32 unit of capital the production function of the company is Q=45K^0.45 L^0.55. Both the output and input markets are perfectly competitive the labor market is in equilibrium the demand function of labor is DL=1480-7.8P_L. the supply function of labor is SL=198+6.6P_L. the price of the service provided by the company is 75. Every unit of the capital cost 1890. Compute the quantity of labor used Compute the level of output Compute the profit of the company
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