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Gwar [14]
3 years ago
8

You just purchased an existing business that produces solar panels according to the following production function:

Business
1 answer:
frez [133]3 years ago
4 0

Answer:

<u>$50</u>

<u>Explanation</u>:

In the production function, Q = K0.5L0.5,

K denotes the fixed input in the short run.

First, we calculate the total cost:

Cost of Capital= 25 x $1 = $25

Cost of Labor (for a start 25 workers are used)= 25 x $1 = $25

Total= $50

Since the price of the solar panels is $100, substrating from the total cost $50 (100-50) we get $50 profit per unit of solar panel.

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5 0
2 years ago
The United States and the European Union are groups of semi-independent states that have come together under an agreement whereb
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Hope this clear things up.

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