Question: Here is the question I would like to get help COST MINIMIZATION A rm uses labor and machines to produce output according to the production

Here is the question I would like to get help

Here is the question I would like to get help COST MINIMIZATION

COST MINIMIZATION A rm uses labor and machines to produce output according to the production function Q = f(L,M) = 4m where L is the number of units of labor used and M is the number of machines. You don't need to graph your work but if you do, it will help you. Don't forget to label your axes. (25 points total) (a) What kind returns to scale does this production function exhibit? (5 points) (b) Given the cost of labor is $10 per unit and the rental cost of using a machine is $20, write the cost equation. What is the slope of the isocosts if you place L in x-axis? (5 points) (c) Suppose that the rm wants to produce its output in the cheapest possible way. If the slope of isoquants is given by MRTSLM = %, nd the number of machines it would use per worker. (5 points) (d) If the output level is thirty two (Q=32), what is the actual number of workers (L=?) and machine (M=?) hired? (5 points) (e) What is the total cost (0:?) faced by the rm with this input mix and corresponding output level? (5 points)

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