Crackthetest,Leavenotrace
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Question 1
1 ptsA firm produces widgets with the production function: Q = 4L^0.5K^0.5, where Q is the quantity of widgets produced, L is the amount of labor, and K is the amount of capital. The firm faces the following costs: Labor costs: $20 per unit of L, Capital costs: $40 per unit of K. If the firm wants to produce 100 widgets, what combination of L and K minimizes the total cost?
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