Question: Consider a firm which has a Cobb Douglas production function,=LaK1-awhere 0 < <1. Its costs are given by+. a. Let=3,=15, and=0.3. Find the values ofandthat

Consider a firm which has a Cobb Douglas production function,=LaK1-awhere 0<<1. Its costs are given by+.

a. Let=3,=15, and=0.3. Find the values ofandthat maximize production subject to the cost constraint,+=150. Depict this solution graphically and provide an interpretation for the Lagrange multiplier.

b. Let=25,=50, and=0.5. Find the values ofandthat minimize costs subject to the production constraint,=240. Depict this solution graphically and provide an interpretation for the Lagrange multiplier.

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