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A firm has production function: q=K^2L We know the rent (cost of capital) is $1,000 and wage (cost of labor) is $500. In the short

A firm has production function: q=K^2L

We know the rent (cost of capital) is $1,000 and wage (cost of labor) is $500. In the short run, the firm uses K=2.

If the firm produces q=1,000, how much can the firm save going from short run to long run?

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