Question: Assume the production function is given by = 2 0 ^ 0 . 7 . Also assume that the wage that the representative firm faces

Assume the production function is given by =20^0.7. Also assume that the wage that the
representative firm faces is given by =7. How much labour input does the representative firm
demand at this level of the wage when it is maximizing its profits? Write down all the steps
involved in your calculation.

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