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Question: st econ 677managerial economicskoma molle ooo sipa lome materials...

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St ECON 677-Managerial Economics-Koma. Molle-... ooo ▽タ Sipa lome Materials Communications Assessments v ntentsGraduate Managerial Economics Homework 1 ework 1 7) Let F L, K 20 Min L, 2K be a firms production function. Let P, Pk 3, and the total budget is 900,000 dollars. How much labor and capital should this firm optimally hire to maximize its profit? Does this production function satisfy the law of diminishing returns? What about decreasing returns to scale? Calculate the firms demand functions for both labor and capital.

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