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A company sells widgets in a perfectly competitive market. The market price for a widget is $100, while the cost of labour is $5

A company sells widgets in a perfectly competitive market. The market price for a widget is $100, while the cost of labour is $5 and that of capital is $8. The production function follows the Cobb-Douglas function below. Q=K0.210.5 (a) Using the Lagrangian multiplier method, find the profit maximizing quantity Q* and its associated profit.

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