Q1. Find the optimal input bundle, (L ,K ), when r = $, w =

Q1. Find the optimal input bundle, (L ◦ ,K ◦ ), when r = $α, w = $β, F(L,K) = L 2/4K 1/4 , and producing 500 outputs.

Q2. Total cost is −αy 2 +βy+100, and the price of the output is $10. Find the best output level, y ∗ . 1

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Q1 To find the optimal input bundle we need to maximize output subject to the cost constraint The pr... View the full answer