Qno1. You have been hired by Kia as manager for its Pakistan operations.  Assume following is the short-run production function at their assembly plant outside Karachi:             Q = 10L2 – 0.5 L3      where L is variable input labor, Q is output of Cars assembled Required. a). Assume Kia Head Office is considering hiring more laborers either at their Gwadarplant or alternatively at the Karachi plant. What will be your advice if workers’ marginal product is 40 at wage of Rs=5/hour in Karachi and marginal product is 28 at wage of Rs=4/hour in Gawdar?

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