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A firm's production function can be written as:
Q = 5(L)^1/2(K)^1/2
where Q represents output per day. The unit costs of inputs are $150 for labor (L) and $1,000 for capital (K). Determine the least cost combination of L and K when output is produced at the rate of 1,000 tons per day. Determine the required outlay for 1,000 tons per day.
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