Question: Consider the production function f(L, K) = 2KL. The marginal products of labor and capital for this function are given by MP L =KL, MP

Consider the production function f(L, K) = 2KL. The marginal products of labor and capital for this function are given by

MP_L=KL, MP_K= 2/L.

Prices of inputs are w= 1 per hour of labor and r= 4 per machine hour.(

a) What is the MRTS_lkof this technology?

b) What is the least costly combination of inputs that allows the firm to produce Q= 8 units of output? What would be the cost of producing these 8 units?

c) Repeat part (b) for a general Q rather than Q= 8. What is the cost of producing Q units in the least costly way?

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