Question: A manufacturing firm's production function is Q = KL + K + L. For this production function, MPL = K + 1 and MPK =

A manufacturing firm's production function is Q = KL + K + L. For this production function, MPL = K + 1 and MPK = L + 1. Suppose that the price r of capital services is equal to 1, and let w denote the price of labor services. If the firm is required to produce 5 units of output, for what values of w would a cost-minimizing firm use
a) Only labor?
b) Only capital?
c) Both labor and capital?

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