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Suppose That a Firm's Production Function of Output Q Is

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Suppose that a firm's production function of output Q is a function of only two inputs,labor (L) and capital (K) and can be written Q = 25LK with marginal products MPL = 25K and MPK = 25L.Letting the wage rate for labor be w and the rental rate of capital be r,the equation for the firm's demand for labor would be:


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