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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 $12,
- The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $12, and can hire labor at a wage of $4. Capital is fixed at one unit. The maximum profits are:
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
