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Existing business that produces solar panels

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You just purchased an existing business that produces solar panels according to the following production function: Q=K^0.5L^0.5.

The business currently has 25 units of capital, which cost $1 each, and no workers. Your first order of business is to hire workers and begin production. Workers can be hired for $1 each.

The market price for the panels that you produce just fell to $100. How much profit, if any, will you make if you produce solar panels given the existing capacity (short run)?

Reference no: EM132498084

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