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I have the following production function:
Y = f(L; K) = L1=3K1=3
(a) Write down the profit maximization problem and optimality conditions.
(b) What is the technical rate of substitution? What is the rate of transformation?
(c) What is my demand for L? What is my demand for K? (d) Write down the cost function as a function of Y, w and r?
(e) What is the Marginal cost of production? What is the AVC and ATC?
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