Suppose a competitive firm that seeks to maximize its profits -IT-CT considering that its production function is given by: q=f(K, L) = K L That its product is sold at the market price P and that its total costs correspond to the cost of hiring labor (L) and capital (K) at the market prices of those factors, w and r respectively: CT=w* L + r *K 3) Now pose the cost minimization problem and show that the contingent factor demands are: Br a+ w, r ) = [2 ( =) *] *** L(q, w, r) = K(q, w, r) = 9 (27) 1 Ba+B