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Assume that a profit maximizer firm uses only two inputs, labor (L) and capital (K), and...

Assume that a profit maximizer firm uses only two inputs, labor (L) and capital (K), and its production function is f(K,L) = K2 x L. Its MRTS of capital for labor (i.e., how many units of capital does he want to give up one unit of labor) is given by MRTS = MPL / MPK = K / (2L) a) Assume that this firm wants to spend $300 for the inputs (total cost of factors of production). The wage per each unit of labor is $10, and the price of each unit of capital is $5. What quantities of labor and capital will he use? How many units of outputs will be produced? Sketch the equilibrium point (on a Cartesian graph with units of capital on Y axis and units of labor on X axis) using the isocost and isoquant curves

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