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(For this question you have 6 attempts - You may think of this as having 3 attempts for each subpart) Consider a firm with a

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Answer #1

a) is correct

b) L = 162/ 4 = 64 (using the relation in a)

Total cost (TC) = wL + rK = 64 x 3 + 4 x 1 = 196

Fixed cost (FC) = rK = 4

Variable cost (VC) = wL = 192

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