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Suppose There Are Ten Identical Manufacturing Firms That Produce Computer

Question 1

Multiple Choice

Suppose there are ten identical manufacturing firms that produce computer chips with machinery (capital, K) and labor (L) , and each firm has a production function of the form q = 10KL0.5. What is the industry-level production function?


A) Q = 10K10L5
B) Q = 100KL0.5
C) Q = 100L0.5
D) none of the above

Correct Answer:

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