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M&O Construction has the production function Q=6L+36K. The price of capital r=$30.
a) What would the price of labour (w) have to be in order for the firm to choose to use both capital and labour as inputs?
b) Suppose w=6 and target output is 720. What is the optimal choice of L and K for this firm?
he lease also provided that the vessel could be purchased at the end of 6 years by the oil company for $35,000. At the end of the 6 years, the oil company exercised its option and bought the vessel.
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Here is the information you require to answer the question. This information is taken from the graph. So you will require to draw the graph to answer the questions. The best level of output for monopolist in short run is 500 units and is given by p..
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