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Business, 12.08.2020 22:01 GreenHerbz206

A hat manufacturing firm has the following production function with capital and labor being the inputs: Q = min(5L,3K) (it has a fixed-proportions production function). a) If w is the cost of a unit of labor and r is the cost of a unit of capital, derive the firm’s optimal inputs, long-run total cost curve, average cost curve, and marginal cost curve in terms of the input prices and Q.
b) A firm has the linear production function Q = 2L + 7K. Derive the expression for the optimal inputs and the 1ong-run total cost that the firm incurs, as a function of Q and the factor prices, w and r

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