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Homework answers / question archive / A competitive firm produces output y using two inputs, labour L and capital K, The production function is given by F(K,L)=K1/31/3L1/31/3
A competitive firm produces output y using two inputs, labour L and capital K, The production function is given by F(K,L)=K1/31/3L1/31/3.The firm takes the input and output prices as given and they are: output price p=12, price of labour w=2 and price of capital r=2. Find the value of L that maximises the firm's profit?
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