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A production process using two inputs, labor and capital, can be written as: Q = 5LK; where O represents output per day (tons). The unit
A production process using two inputs, labor and capital, can be written as: Q = 5LK; where O represents output per day (tons). The unit costs of inputs are $150 for labor (L) and $1,000 for capital (K). a. Determine the least cost combination of L and K if the firm decides to produce 1,000 tons per day. b. What is the average total cost of producing $1,000 tons per day. c. Is this an increasing, decreasing or constant return to scale production function
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