North American Manufacturing has the production function Q = min{0.25K, 0.5L}, where K is units of
capital and L is hours of labor.
a. Without any warning, the price of capital doubles.What should North American Manufacturing do in response?
b. If North American were planning a new manufacturing plant, would there be any advantages to a larger facility?

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The Answer of North American Manufacturing has the production function Q = min{0.25K, 0.5L}, where K is units of
capital and L is hours of labor.
a. Without any warning, the price of capital doubles.What should North American Manufacturing do in response?
b. If North American were planning a new manufacturing plant, would there be any advantages to a larger facility?

North American Manufacturing Has the Production Function Q = Min{0