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Please written by computer source Firm's production function is given by Q = 4K + 8L. The firm is currently using 2 units of K
Please written by computer source
Firm's production function is given by Q = 4K + 8L. The firm is currently using 2 units of K and 5 units of L. The price of capital is $2 and the price of labor is $10. (a) What is the firm's total cost? (b) How much output is produced with the current amounts of K and L? Draw the lsoquant curve associated with the current output of the firm. (C) Is the firm currently using the amount of K and L that minimizes cost to produce the amount you found in part a? If not, what combination of K and L should they use and what is the new cost? Draw the lso-cost curve on your graph in part b. that represents the minimized costStep by Step Solution
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