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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.
Illustrate what is the legal distinction between selling a product and licensing it. Many of the provisions in the UCITA were first proposed as a modification to Article 2 of the UCC. Why do you think the drafters decided to propose it as a separa..
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Suppose Firm X is a monopolist and is receiving positive economic profits. Illustrate what prevents other firms from directly competing away the profits.
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