Question: 3. Given the production function y = 2k + 51, solve for the cost function in terms of y when the firm is free to

3. Given the production function y = 2k + 51, solve

3. Given the production function y = 2k + 51, solve for the cost function in terms of y when the firm is free to choose both labor and capital. Wage: w = 2 and rental rate of capital: r = 3 W = 2 TC= 21+6K R = 3 Cost of Capital TC = 3y-2(15 2 Crink CK=3k TC- 34- Bytookx 2 5 6 Cost of labor 10 1/ + 21 (1 = w/ TC= Q1tok COST TC = Ck+c Optimal cost function T(= 3k+21 Cost function y= 2k+51 K = Y- 51 TC = 3 ( 4-51 ) +2 ( X-2k ) 2 1 = y- 2k 5

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