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Let Q = LK, where Q is output, L is labor, and K is capital MP, = K and MPK - L a) For arbitrary
Let Q = LK, where Q is output, L is labor, and K is capital MP, = K and MPK - L a) For arbitrary values of w, r, and Q, solve for the (long run) input demand curves. b) What is the long run total cost curve? What is the average total cost? c) Suppose that the firm's capital is fixed in the short run at K. Find the firm's short run input demand for labor. d) Does the production function exhibit increasing, constant or decreasing return to scale?
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