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A firms unit capital and labour costs are $1 and $2 respectively. If production function is given by Q 4LK L2 Find the maximum output
A firms unit capital and labour costs are $1 and $2 respectively. If production function is given by
Q 4LK L2
Find the maximum output and the levels of K and L at which it is achieved when the total input costs are fixed at $105. Verify that the ratio of marginal product to price is the same for both inputs at the optimum.
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