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Your family runs a company and each week you need to produce 1,000 units of your product. Your long-run production function is = 4 0.75
Your family runs a company and each week you need to produce 1,000 units of your product. Your long-run production function is = 40.750.25 . For this function, the =(/).75 and the =3(/).25 . The weekly cost function is =10+2.
a. What ratio of capital to labor minimizes your family's total costs? (hint: find the expansion path!)
b. How much capital and labor will you need to meet your quota of 1,000 units?
c. How much will meeting this quota cost you?
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