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Question: A firm has a budget of £800 per week to spend on the two inputs K and L. One week it is observed to buy 120 units of L and 25 of K. Another week it is observed to buy 80 units of L and 50 of K. Find out what the intercepts of its budget line on the K and L axes will be and use this information to deduce the prices of K and L, which are assumed to be unchanged from one week to the next.

Engineering Mathematics, Engineering

  • Category:- Engineering Mathematics
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