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Consider a price-taking firm that uses labour (L) and capital (K) to produce output according to thefirm's production functionf(K,L)=26L^1/3.K^2/3.If the firm is minimisingits production costs
Consider a price-taking firm that uses labour (L) and capital (K) to produce output according to thefirm's production functionf(K,L)=26L^1/3.K^2/3.If the firm is minimisingits production costs and if the price of labouris 3 times the price of capital, then its chosen input bundle should satisfy:
K=6L
K=12L
K=L/12
K=L
K=2L
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