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Economics

The production function for a firm is expressed as follows:

Q = 800K - K² +5KL - 7750L + 10,000

Where Q is quantity of units manufactured, K and L are units of capital and labour used respectively.

Determine

i) The units of capital and labour that the firm should hire to maximize output. [As usual, you are expected to check the 2^nd order condition]

ii) Maximum output

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9526960

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