A firm produces output according to a production function Q = F(K,L) = min {2K,4L}.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 4 units of output?
c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour?