Optimal method for procuring inputs
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Now suppose that the firm's capital is fixed in the short run at 5 units with w = 1 and r = 2. Find the input of labor to produce 10 units of output.
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Discuss the optimal method for procuring inputs that have well defined and measurable quality specifications and require highly specialized investments. What are the advantages and disadvantages of acquiring inputs through this means? Give exampl
The rental rate of capital be r = 1. What is the cost minimizing combination of labor and capital, (L∗,K∗)? What is the minimum cost to produce 100 units of output?
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