Question: 3 . ( 2 7 points ) Let the production function of a firm be given by X = f ( l , k )
points Let the production function of a firm be given by Xflklk Let the cost of labor and capital be wr Let the price of the produced good be shown by p
a Find the conditional factor demands and cost function by solving the cost minimization problem.
b If p find the production level at which the firm maximizes its profit, the amount of labor and capital it will use, its total cost and its profit.
c Obtain the same result by solving the firm's profit maximization problem.
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