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can i get the answer step by step thx for ur help :> 3. [20 points} Suppose we have a rm that can substitute 1
can i get the answer step by step thx for ur help :>
3. [20 points} Suppose we have a rm that can substitute 1 labor for 5 capital. The production function then would look like: f(L,K) = 1.3+? Further, we know that there are two cases with perfect substitutes, one where the slope of the isoquant 3> slope of the isocost, and the same thing reversed. (a) [10 points) Derive and describe the condition under which K" = [I {show using MPL,MPK,T 3; 11:}. Also, nd L\". [b] [10 points) Derive and describe the condition under which L* = I} (show using MPL,MPK,T 3:: w}. Also, nd K\Step by Step Solution
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