The production function of a firm that uses labor (L) and capital (K) to produce its output
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The price of labor is $4 per unit and the price of capital is $5 per unit.
If its level of capital is fixed in the short run at K = 8, what is its cost of producing 40 units of output? If it can vary its capital and labor freely in the long run, what is its long-run cost of producing 40 units of output?
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