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Suppose the hourly wage rate is $29,the rental price of capital is $5and the price of output is constant at $47 per unit.Firm's production technology
Suppose the hourly wage rate is $29,the rental price of capital is $5and the price of output is constant at $47 per unit.Firm's production technology is q =4K0.25E0.75,the marginal product of employment is MPE=3K0.25E-0.25and the marginal product of capital is MPK =K-0.75E0.75.What is firm's optimal demand of labor if firm plans to produce q=10units of outputs in the long-run?(please keep 1 decimal place in your answer)
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