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Exercise 4 (10 points) A public hospital employs doctors (L) and equipment (K) to produce medical services. The weekly production function of the hospital is q 2L0.5K where L is measured in number of doctors and Kin pieces of equipment, and Q is the number of patients treated each week. Doctors are hired on a yearly basis, and the conditions of their contract can be renegotiated only in September while the lease contract for the medical equipment employed at the hospital can be changed at any point in time

Answer E-J.

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