Homework Answers
y1=2(K)^0.5
y2=2(L)^0.5
If K = L
then y1=y2 therefore as long as r<w we should use y1 rather than y2 to maximise profit
We should use plant 1
Answer is TRUE
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Question 2 Consider a firm with 2 different production plants that have the following production functions...
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