Question: A firm produces an output with the production function Q = KL, where Q is the number of units of output per hour when the

A firm produces an output with the production function Q = KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for this production function are MPK = L and MPL = K. The factor price of K is 4 and the factor price of L is 2. The firm is currently using K = 16 and just enough L to produce Q = 32. How much could the firm save if it were to adjust K and L to produce 32 units in the least costly way possible?

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