Question: Let the production function be given by: q = 312K, with rental rate v = $2 and wage rate w = $1. 1. How

Let the production function be given by: q = 312K, with rental rate v = $2 and wage rate w = $1. 1. How much K and L are employed to produce 162 units of output? 2. Suppose that the firm wants to increase output to 750 units of output, now how much K and L are employed to produce with minimize cost? 3. Suppose that in the short run the amount of capital is fixed at K= 12, what is the firm short run fixed cost? 4. Suppose that in the short run the amount of capital is fixed at K = 12, what is the short run total cost of producing 900 units of output? L = 5, K = 1.25 = L = 16, K = 4 Choose... Choose...

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