Question: 1) The production function has the formQ = 50 L 0,5 K 0,5 Let P L = w = 5, K = r = 20

1) The production function has the formQ = 50 L0,5 K0,5

Let PL = w = 5, K = r = 20

Determine the total production cost of 1000 units of production.

2) The production function has the formQ = L0,5 + K0,5

Determine the coefficient of elasticity of replacement of capital by labor.

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