Question
A firms production function is given by F(L,K) = L 1/4 K 1/4 . You also know that wage rate is $1, the price of
A firms production function is given by F(L,K) = L1/4K1/4. You also know that wage rate is $1, the price of capital is $1, and the price of product is $54.
We are in the long-run. How much profits does the firm make in the long run when producing 6 units of output (Q=6)?
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Financial Accounting
Authors: C Thomas,
12th Edition
007760086X, 9780077600860
