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a) The production function of certain firm is given as
Q = 40 K1/2 L 3/4
A unit of capital and labour costs Kshs 44 and Kshs 36 respectively. The firm would like to maximize output subject to it spending Kshs 5000. Determine the number of units of capital and labour it should hire.
a) Supposing the firm in (a) is set to produce 400 units of the product, determine the number of K and L that the firm should hire so as to achieve this objective.
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