Question: 7. Suppose a production function is given by q = KL. the price of capital is $10 and the price of labor is $16.

7. Suppose a production function is given by q = KL. the price of capital is $10 and the price of labor is $16. The capital is fixed at the level K = 8. a. What is the Marginal rate of technical substitution (MRTS), if they are using 16 units of labor? b. Calculate the total cost function (function of output (q)) c. What is the quantity of labor that minimizes the cost of producing any level of output? d. What is the minimum cost of producing q units of output?

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