Question: A firm has a production function given as Q(K,L) = K 1/2, L1/2. Given that labour cost (L) = Ksh.4 and capita I (K) costs

A firm has a production function given as Q(K,L) = K 1/2, L1/2. Given that labour cost (L) = Ksh.4 and capita I (K) costs Ksh. 12 and the firm has a budget of Ksh. 30000. Determine; the objective and the constraint f unctions, formulate the optimisation problem of the fi rm , find the amounts of K and L that a firm should e mploy to optimize output

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