Long run decisions of a firm that has production function

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Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K

Suppose w = 1 and r = 0.5

At the same input prices, the firm chooses now to produce 20 units of output.

(a) What are the optimal choices of inputs for this firm?

(b) Do you find something unusual what compared to the optimal choices for q = 10 in question 4a?

Reference no: EM131005387

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