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Consider the following production function, show every step of all calculations. 1. Consider the following production function: Y = AK1-7LY, where Y is production, A

Consider the following production function, show every step of all calculations.

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1. Consider the following production function: Y = AK1-7LY, where Y is production, A is productivity, K is capital, L is labor, and y E (0, 1) is a parameter. Let w denote the wage rate and r denote the rental rate of capital. Solve the profit maximization problem of the firm: max AKI-7LY - wL -rK. What K, L is the expression for rk and wL? Comment on your results. Show every step of all calculations

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