Question: The production function is y = L 1/7 K 1/8 . The price of the output is $100, w = $15, and r = $12.

The production function is y = L 1/7 K 1/8 . The price of the output is $100, w = $15, and r = $12.

a. Find the optimal input of labor and capital.

b. Find the optimal output which maximizes the profit.

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