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Suppose a rm's production function is given by Q = F (L,K ) = 5LK . The wage rate is $100 per unit of labor and the rental rate of capital is $50 per unit of capital.
(a) What is the least-cost combination of capital and labor if the rm produces 1000 units of output?
(b) What is the rm's long run cost function?
(c) If the rm currently uses 10 units of capital, what is its short-run cost function?
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Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
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