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Suppose that for every K > 0 firm B's short run total cost curve is given by SRTCR (Q) = 4 K + K, where
Suppose that for every K > 0 firm B's short run total cost curve is given by SRTCR (Q) = 4 K + K, where K is the number of units of capital that the firm employs. For example, firm B's short run total cost curve is SRTC' (Q) = 4Q2 +1 if K = 1, and SRTC?(Q) = 2Q2+2 if K = 2. Assume that if K = 0 then it is impossible for firm B to produce Q = 3 units of out- put. In the long run, how many units of capital should firm B use if it wants to produce 3 units of output in the cheapest way possible? Explain your answer in detail
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