Question: A firm faces the production function Q = 6K 0.4 L 0.5 . If it can buy input K at 32 a unit and input

A firm faces the production function Q = 6K0.4 L0.5 . If it can buy input K at 32 a unit and

input L at 8 a unit, what combination of L and K should it use to maximize production if it is

constrained by a fixed budget of 36,000? Explain the economic meaning of Lagrange Multiplier

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