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Suppose Goncalo hires workers at his supermarket at a wage of $12/hour. He also uses checkstands (i.e., capital) with a rental rate of $10/hour. Production
Suppose Goncalo hires workers at his supermarket at a wage of $12/hour. He also uses checkstands (i.e., capital) with a rental rate of $10/hour. Production of customers served (i.e., output) is determined by the hourly production function f (L, K) = 0.5L3/4K2 . If Goncalo wants to serve 400 customers per hour, how many workers and checkstands must he employ? How much will it cost to serve 400 customers per hour?
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