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Suppose a firm has the following production function: Q = 2KL. The marginal product of capital for this production function is 2L, and the marginal product of labor is 2K. If capital rents for $100 per unit per day, labor can be hired for $200 per unit per day, and the firm is minimizing costs, a. Find the total cost of producing 60 units of output b. Suppose you want to determine the cost of producing the more general q units of output. Using the same set of procedures you followed in (a), but a more general q instead of 60, find this firm's total cost function, which expresses total cost as a function of q. c. Divide the total cost function you found in (b) by q to determine this firm's average cost function.

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Assume that the CEO of NatureCare Products has indicated that he wants you to prioritise treatment of a number of risks as follows: • Inability to attract sufficiently qualified staff One of the risks identified in the risk management plan is the inability to attract sufficiently qualified and knowledgeable staff to manage the new retail stores. The risk treatment identified is to invest in the training and development of existing staff to fulfil this role, at least in the short term. It has been identified that at least two of the existing customer service representatives are interested in taking on this new role. Neither of the two customer service representatives have managerial skills nor knowledge, but they both have excellent company and product knowledge, as well as customer service skills. • Low customer satisfaction A further risk identified as a priority is the threat to customer satisfaction. Given that the business is expanding, customer satisfaction will be crucial. The risk treatment identified is to develop a customer questionnaire that can be used to measure customer satisfaction. You have been directed to implement strategies to reduce the risks posed.

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