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a) Suppose the inputs in problem 5 can be purchased at the same price per unit. Will production be relatively labor intensive or capital intensive?
a) Suppose the inputs in problem 5 can be purchased at the same price per unit. Will production be relatively labor intensive or capital intensive? Explain. b) Suppose input prices are PL= 40 and PK = 80 and the price of output is 10. Determine the optimal quantity of each input. *problem 5 provides us with a production function Q= 10L - 0.5L^2 + 24K - K^2 for L and K in the range 0 to 10 units
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