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A single product firm intends to produce 30 units of output as cheaply as possible. By using K and L units of capital and
A single product firm intends to produce 30 units of output as cheaply as possible. By using K and L units of capital and labor respectively, it can produce K - L units. Suppose prices of capital and labor are 1 and 20, respectively. The problem is then. min K+201 subject to K - L - 30 What is the additional cost of producing 31 units?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
