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The board of a firm wanted to get value for money by employing the right number of workers. Thus, it hired an economist to estimate
The board of a firm wanted to get value for money by employing the right number of workers. Thus, it hired an economist to estimate the firm's production function. Based on the economist's report, the board now knows that the firm's production function is given by Q=K^1/2 L^1/2. Capital is fixed at 9unit. Suppose the firm can hire labor at a wage of GHS 15 per hour and output can be sold at a price of GHS 500 per unit. Determine the profit-maximizing levels of labor and output
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