Assume that production function of company is given with the following Cobb-Douglas production function, Y=0.4*K0.8L0.2 where K is capital and L is labor. Assume that cost of one-unit capital and labor is 2$ and 1.5$, respectively. Price of output is 5$. Find marginal product of both capital and labor.Find whether capital and labor is diminishing return or not. Find profit maximizing amount of labor in short run if capital is fixed at quantity of 20. Find profit maximizing amount of capital and labor in the long run.

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