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A firm produces and sells two goods: X and Y . Both goods sell for a price of $1 each. The production function for good
A firm produces and sells two goods: X and Y" . Both goods sell for a price of $1 each. The production function for good X is X = LX The production function for good Y is Y = Lyk 2 The firm divides its labour between the two products: I = Ly + Ly and gets its labour for free, but can only use 10 units of it or less L
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