Question: Consider the production function:F(L,K) =L^1/3 K^1/3. Suppose the wage rate (price per unit of labour),w, is 2 and the capital rental rate (price per unit

Consider the production function:F(L,K) =L^1/3 K^1/3.

Suppose the wage rate (price per unit of labour),w, is 2 and the capital rental rate (price per unit of capital),r, is 1.

Find the total cost, average cost and marginal cost of producingyunits of output. Is the average cost increasing or decreasing iny? Is the marginal cost higher or lower than the average cost?Find the total cost of producing 32 units of output.

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