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A firm production function is given by q = f(k,l) = kl. q 0 = 100. w = $20, v = $5. At the point
A firm production function is given by q = f(k,l) = kl. q0= 100. w = $20, v = $5. At the point at which this firm minimizes the cost of producing q0:
- find the units of labor (l) and capitol (k)
- determine the value of the Lagrange multiplier lambda at the cost minimizing input choice
- The demand equation for capital input k, in terms of q, w, and v, is given by the equation: k* = [q(w/v)]n. Solve for [n].
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