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a). Two goods are produced in this city....Wheat, bananas...Wheat is made using the technology Qw=Min(0.5L,K) and...

a). Two goods are produced in this city....Wheat, bananas...Wheat is made using the technology Qw=Min(0.5L,K) and bananas are made using the technology Qb=Min(L,0.5K). Each good sells for 10 coins a unit. What wage and capital rental rate is consistent with zero profits?

b). Capital = 30 , Labor = 36

Now find the level of wheat and banana output that is consistent with full employment.

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