Question: Suppose that a firm uses two inputs ( K & L ) to produce its final output ( Q ) . Suppose also that the
Suppose that a firm uses two inputs K & L to produce its final output Q Suppose also that the production functions for this firm is:
Q FK LLK
Suppose also that the price of Labour is and the price of Capital is The price of your final good is Finally, assume that we are in the shortrun, and so Capital is fixed at K
What is the shortrun profitmaximizing choice of Q
Note: Please round your answer to two decimal places.
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