Question: Please answer Question 27 (12 points) al (4 marks) Suppose for a particular production function, the cost-minimizing level of labour is L=2q and the cost-minimizing

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Question 27 (12 points) al (4 marks) Suppose for a particular production function, the cost-minimizing level of labour is L=2q and the cost-minimizing level of capital is K=5q. If the price of labour is $5 and the price of capital is $3, find an expression for the long run total cost curve as a function of output. Write your answer in the myls answer box. Show any supporting work on your paper. b) (4 marks) Consider the production function q = LK. Does the production function exhibit increasing, constant or decreasing returns to scale? Explain your answer in the myls answer box. Show supporting work on your paper. c) (4 marks) Manny loves steak and is completely indifferent about hamburgers. On your paper, sketch two representative indifference curves illustrating Manny's preferences (Steak is the y axis good) and draw an arrow on your graph pointing in the direction of more preferred bundles. In the myls box, briefly indicate if Manny's preferences exhibit a diminishing marginal rate of substitution. MacBook Air

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