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A Firm Has a Production Function of Q = KL

question 54

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A firm has a production function of Q = KL + L, where MPL = K + 1 and MPK = L. The
Wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital. In the short run, capital (K) is fixed at 4 and the firm produces 100 units of output. The firm's long run total cost of producing 100 units of output is $____.


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