dilennyv2229 dilennyv2229

03-06-2023
Business

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Sam and Erica are starting a new restaurant in Portland, Oregon. While Sam plans to do the cooking himself, he will need to employ workers and machinery to produce food. He estimates his production function as: q = 15L⁰.²⁵ K. Sam is able to accumulate $10,000 to finance the business. Workers cost $10 and capital costs $50. What is the highest output that Sam can produce with the finances available?

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