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Zak s trading card company is deciding much cardboard ( k ) and labor ( l ) it needs to e iciency produce collectable trading
Zaks trading card company is deciding much cardboard k and labor l it needs to eiciency produce collectable trading cards. Given that Zak has to spend on l and k and pl and pk If the production of trading cards uses the production function f l k l k find the optimal quantities of l and k
Set up the Lagrangian Find LLL
Solve for lambda
Solve for k
Plug into the budget constraint and solve for lk
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