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A firm produces output according to a production function: Q = F ( K,L ) = min {5 K ,5 L }. a. How much output is produced when K = 2 and L = 3?

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A firm produces output according to a production function: Q = F(K,L) = min {5K,5L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is \$50 per hour and the rental rate on capital is \$30 per hour, what is the cost-minimizing input mix for producing 10 units of output? Capital: Labor: c. How does your answer to part b change if the wage rate decreases to \$30 per hour but the rental rate on capital remains at \$30 per hour? Capital increases and labor decreases. Capital and labor increase. Capital decreases and labor increases. It does not change.

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A firm produces output according to a production function: Q = F(K,L) = min {5K,5L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is \$50 per hour and the rental rate on capital is \$30 per hour, what is the cost-minimizing input mix for producing 10 units of output? Capital: Labor: c. How does your answer to part b change if the wage rate decreases to \$30 per hour but the rental rate on capital remains at \$30 per hour? Capital increases and labor decreases. Capital and labor increase. Capital decreases and labor increases. It does not change.

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