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Suppose a firm seeks to minimize the cost of producing 434 units of output (Q=434),...

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Suppose a firm seeks to minimize the cost of producing 434 units of output (Q=434), given the production function, Q=10K0.7L0.1, and the user cost of capital and labour are 28 rands and 10 rands respectively. a) Use Langrange method to find the cost-minimising combination of capital (K) and labour (L) for producing an output of 434 units. b) Determine the long run marginal cost of output. Hint: find lambda. (5) c) Determine the minimum cost

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