Question: How do you solve for part c? Problem 1: This problem continues from the previous page. Suppose you are given the following problem: min TC

How do you solve for part c?

Problem 1: This problem continues from the previous page. Suppose you are given the following problem: min TC = 10L + 5K subject to Q =4LK = 1,000 Verify numerically that the input price ratio equals the MRTSLK. (5 points) MRTSLK = MPL/MPK = 4K/4L = 89.44/44.72 =2 w/r = 10/5 = 2. Thus, MRTSLK = w/r = 2 is verified. Given your answers above, what would it cost the firm to produce one additional unit of Q? (5 points) Here you need to use your value of 2: 2 =2.5/K = 1.25/L = $0.11

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