Assess whether the following statements are true or false. Do not forget to motivate your answer.
A firm produces space ships using robots and humans as the only inputs. The production function is f(L,K)=L2+K2
where L represents human and K represents robot. The price of a human is w = 1 and the price of a robot is v = 1.
Claim: In the interest of minimizing its long run cost of production, the Örm should use an equal amount of humans and robots: L= K.
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