Question: Recompute your answers to Exercise 1, assuming that the per-unit cost of labor increases from CL = $2 to CL = $4. How has the

Recompute your answers to Exercise 1, assuming that the per-unit cost of labor increases from CL = $2 to C’L = $4. How has the increase in the labor rate affected the optimal proportions of labor and capital used in the production process?

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