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Suppose that a firm's production function is Q= min{K,L} . Currently, the wage is w= 8 and the cost of capital is r=8
(A) What is the minimum cost method of producing Q=40 units of output?
(B) Suppose that wages fall to w=4. Keeping total cost the same, what level of output can be produced and mix of K and L is used?
(C) Repeat parts (A) and (B) assuming the production function is Q=K+L
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