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The Firm Has a Production Function Given by F(L,K)= L1/4K1/2

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The firm has a production function given by f(L,K)= L1/4K1/2. Currently, the wage rate is 9 and the rental rate of capital is 2 and this firm has a contract to produce 24 units of output. How much labour and capital will this firm hire?


Definitions:

Price of Gasoline

The cost per unit of gasoline, often influenced by oil prices, taxes, and supply-demand dynamics.

Marginal Revenue Product of Labor

The additional revenue generated by employing one more unit of labor, holding all other inputs constant.

Extra Revenue

Additional income generated through activities outside of a company's or individual's primary revenue stream.

Hiring Another Worker

The process of adding an additional employee to the workforce, typically in response to increased demand for a business's products or services.

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