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Suppose the Production Function Is Q = 12 L0

question 109

Essay

Suppose the production function is q = 12 L0.25K0.75.Determine the long-run capital-to-labor ratio (K/L)if the cost a unit of capital (r)is three times the cost of a unit of labor (w).


Definitions:

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for all aspects of the business, including liabilities.

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