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Finding the maximum profit and the values of L and K.

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A firm's production function is given by ....(see attachment) , where Q, L and K denote the number of units of output, labour and capital. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit.

The profit function is .......

Find the maximum profit and the values of L and K at which it is achieved.

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This solution shows step-by-step calculations to determine the maximum profit and the values of L and K.

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We are given the profit function, so we want to find the values of L and K such that the profit is the highest.

To maximize a function of two variables, we take the partial derivatives ...

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