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Questions 3 and 4 refer to a profit-maximizing price-taking firm in both its input and output markets. The firm produces a single output @ according

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Questions 3 and 4 refer to a profit-maximizing price-taking firm in both its input and output markets. The firm produces a single output @ according to the production function Q=f (L, K)=100+30 * In L+20 x In K Question 3 In the initial situation, labour is paid an hourly wage rate w=$6.00 and the hourly rental cost of capital is =$10.00 . The firm sells its product at a price P=$4.00 per unit of output Q . Which of the following is true? A. The Hessian determinant evaluated at the profit-maximizing input combination (L, K) is 0.375 B. The profit-maximizing input combination is (L, K)=(8,20) C. The marginal physical product of labour is 30 D. The most profitable output level is Q=100 E. The value of the marginal physical product of labour is 120

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