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Q. A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K2 L where K is the amount of capital and L is the amount of labor employed by the firm. The unit prices of capital and labor are, respectively, r = $6 and w =$5. Let the amount of capital K be fixed at K=20. Based on this information, determine and sketch the firm's short run cost curves: AFC, AVC, AC, and MC. Please use the back of this page if you need more space for your solution.
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