Question: ((3) Setup the Lagrangian for the optimization problem you setup (2 points) (:1) The tangencjr condition for this problem is 111' .5?sz Solve for the

((3) Setup the Lagrangian for the optimization problem you setup (2 points) (:1) The tangencjr condition for this problem is 111' .5?sz Solve

for the cost minimizing amount of capital and labor: K*[w,r,q] and L*(w,r,q)-

Hhat is the minimized cost C'{u:,r,q)? (4 points) 8. Suppose the production

((3) Setup the Lagrangian for the optimization problem you setup (2 points) (:1) The tangencjr condition for this problem is 111' .5?sz Solve for the cost minimizing amount of capital and labor: K*[w,r,q] and L*(w,r,q)- Hhat is the minimized cost C'{u:,r,q)? (4 points) 8. Suppose the production of girl scout cookies uses capital K and labor L according to the function F(K, L) = KALI (a) What is the Marginal Product of Capital? What is the Marginal Product of Labor? Is there diminishing marginal product of capital? Of labor? Prove your answers to the last two questions (6 points) (b) Setup the long run cost minimization problem. (2 points)

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