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The production function for a competitive firm is Q = K .5 L .5 . The firm sells its output at a price of $11,
- The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $11, and can hire labor at a wage of $4. Capital is fixed at one unit. The maximum profits are:
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Managerial Economics Foundations of Business Analysis and Strategy
Authors: Christopher Thomas, S. Charles Maurice
11th edition
978-0078021718
