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Suppose the firm's production function is given by f(L,K) = 5LK. C represents the total cost...

Suppose the firm's production function is given by f(L,K) = 5LK. C represents the total cost of production; the price of L is PL and the price of K is PK. Plot an isoquant from this specific production function. Using graphical analysis derive the firm's conditional demand curve for L in both the short and long run. Explain.

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Answer: Given firms productivity function is: f(hik) = 54k Price of L =PL price of K =Pk c = total cost function I loquant fI Sowentis; • Demand are in long run and short run; Demand ane in long fon is: KA >L

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