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Suppose Leonard Petroleum produces gasoline. Its production function is Q = 100KL, where Q is the amount of gasoline produced in gallons per hour, L
Suppose Leonard Petroleum produces gasoline. Its production function is Q = 100KL, where Q is the amount of gasoline produced in gallons per hour, L is the amount of labor employed with a wage W = $30 and K is the amount of capital rented at the rental rate R = $120. The marginal product of labor MPL = 100K and the marginal product of capital MPK = 100L. What is Leonard's minimum cost to produce 1,000 gallons? (Round to 2 decimal places) Minimum Cost = ______
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