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Assume the production function of a firm is given as Q= 10 L 0.6K 0.7 , if the output restricted to 200 units, price per
Assume the production function of a firm is given as Q= 10 L 0.6K 0.7 , if the output restricted to 200 units, price per unit of labor (L) and capital (K) is birr 10 and birr 8 birr respectively. A. Determine the amount of L&K that should be employed at minimum cost. B. Find minimum cost of production. C. What type of returns to scale does the production function shows
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
