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. Consider the production function: f(K,L)=KLA. Let w and r denote the price of labor and capital, and let p denote the price
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S (K.L)= KL MP1 - (At optimal) MPK 1 714 IK 2L K = 2w1 ... (1) Substituting the value of K in production function f(K.L)=ਕਦੀ 15 ) -b) Profit = Revenue -cost (maximizing the profit with respect to q) 3p 1 +23 w373 =9 (raising both sides to the power of 3) SThe level of profit is: z = pq - ਤੇ 1124 +23 | w373q3 ( 2) +23 +2 ਕਰਕ ਕਲਾ - - - - - - p - +2= 117 | 2 +23 37.3 Ti profit = ?

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