Question: See attached photo: Consider the production function F{L, K) = (M: + 1.2K)2 and suppose w = 4 and r = l. (a) 111e cost
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Consider the production function F{L, K) = (M: + 1.2K)2 and suppose w = 4 and r = l. (a) 111e cost of producing Q = 1 is E . (b) The cost of producing Q = 2 is S. Further suppose that p = 1/5 and consider the problem of maximizing profit pF{L, K} wL 1-K. (o) Is (L, K) = (D, D) a maximizer'? E [Enter 1 for yes and -1 for no.) (d) Is (L, K) = [1, 2) a maximizer'? E [Enter 1 for yes and -1 for no.) (Enter 1 for yes and -1 for no.) (e) ls (13,11?) 2 (1,2\\/) a maximizer? E
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