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Question: a firm uses labor l and capital k to produce...

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A firm uses labor L and capital K to produce output according to Q=(L^{0.5}+K^{0.5})^{2} .

Wages are \omega =2 and the rental rate of capital is r=1, regardless of output.

a) The firm is cost-minimizing. Solve for K and L as functions of Q. Find the equations for total cost and average cost.

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