Question: (a) Suppose the production function is Q = min {K, 2L}. How much output is produced when 4 units of labor and 9 units of

(a) Suppose the production function is Q = min {K, 2L}. How much output is

produced when 4 units of labor and 9 units of capital are employed? Please explain.

(b) You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The

firm produces and sells a given output. If w = $40, r = $100, MPL = 20, and MPK= 40

Is the firm minimizing costs? If not, should the firm use more labor and less capital, or less labor and more capital

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