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suppose the hourly wage is $2 and the price of each unit of capital is $8. The production function is given by q = (E^1/2)(K^1/2) and the marginal product of labor and capital are MPe =(K^1/2)/(2E^1/2) and MPk =(E^1/2)/(2K^1/2) respectively. A)what is the average product of capital and labor? B)what is the cost minimization choice of capital and labor if the firm decides to produce 144 units of output? can you please show work and how to get the answer
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Find out your best affordable bundle if your travel preferences are such that you require exactly
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Suppose the government decides to increase taxes by $40 billion in order to increase Social Security by the same amount. Explain how will this combined tax-transfer policy affect aggregated demand at current prices.
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