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Suppose a rm uses skilled and unskilled workers to produce. The rm's production function is Q=Hmm where Q is the output quantity; H is the
Suppose a rm uses skilled and unskilled workers to produce. The rm's production function is Q=Hmm where Q is the output quantity; H is the number of skilled workers; and L is the number of unskilled workers. Let the wage rates of skilled and unskilled workers be war = 2 and 11);; = 1 respectively. The output price is p = 1 per unit. The rm operates in competitive input and output markets. What is the prot maximizing combination of H and L? @)H=QL=1 w)H=mL=2 (@H=L=& m)H=L=mm) (H=L= a)H=zL=1 @)H=LL=2 m)H=$L=2
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