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BUY OUT 2UZE Problem 1 Roger Golfs uses both labor and capital to produce their world famous discs (similar to a tough Frisbee) for disc
BUY OUT 2UZE Problem 1 Roger Golfs uses both labor and capital to produce their world famous discs (similar to a tough Frisbee) for disc golf. Their production function looks like this: Assume each disc sells for $10. We'll also assume a competitive market where Roger Golfs has to use the market price for labor ($400) and capital ($100) (a) What is the optimal number of employees if capital is fixed at 5 units? (b) How much profit do they make? () Now. let's assume the firm has signed a contract to supply 250,000 discs for a tournament next year, but they are free to use any amount of labor and capital they would like (in other words, they are in the long-run). How much labor and capital will they use now? (d) What is their profit in this case
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