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You are tasked with manufacturing 12 commercial aircraft per month. A new OSHA rule requires that welders be given paid 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using the isoquant-isocost graph as an aid, explain what will happen to the capital-labor ratio (K/L) in both the short run (when capital is fixed) and the long run (when capital can change). Illustrate your answer using the isoquant/isocost diagram. (Hint: The change in the law is equivalent to a change in technology.)
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With the following condition: UxxUx^2-2UxyYxUy+uyyUy^2
When the work was complete, Chuckrow paid Gough the original contract price but refutilized to pay him for the additional cost of reerecting the trusses.
Using production theory, explain illustrate what will take place to the capital- labor ratio in both the short-run also the long run.
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