Question: 1.(a)Clearly state and explain the condition for cost-minimizing use of labor and capital in a the production process, where labor and capital are variable inputs.

1.(a)Clearly state and explain the condition for cost-minimizing use of labor and capital in a

the production process, where labor and capital are variable inputs.

(b)Graphically illustrate (manually drawn graph) and explain why the stated condition in (b) is true.

(c)What if an individual manage a firm with the production function Q = F(K, L) = 4K + 8L, and the individual is able to hire labor at $60 per hour and the rental rate on capital is $20 per hour. Show the steps and calculations to determine the cost-minimizing capital (K) and labor (L) mix to produce 32 units of output (Q).

(d) Provide a graphical illustration (manually drawn graph) to justify your answer in (d).

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