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where L is the labor input and K is the capital input. HQ Shoes has a budget constraint of 300 thousand dollars, with labour costing
where L is the labor input and K is the capital input. HQ Shoes has a budget constraint of 300 thousand dollars, with labour costing 20 thousand dollars per unit and capital costing 20 thou sand dollars per unit. ThiscompanywantstoknowthelevelsofLandK,atwhichitsproductioncanbemaximised subject to the budget constraint
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