Question 2: Consider a ski resort which uses capital K (mountains, ski lifts, lodges, etc.) and abor L (ski instructors, rental shop employees, kitchen staff, etc.) to accomodate q skiers per day according to the production function q=f(L,K)=L2/3K1/3 1. Write down the problem the ski resort solves to find the levels of K and L that minimize cost. What two equations are used to solve it? 2. Given the ski resort wants to accomodate q skiers, solve this problem to find L(q) and K(q) in terms of wages w and the price of capital r. 3. Suppose w=1,r=4. Find L(q) and K(q) for q=500,q=1000, and q=2000. Plot these point on a graph and then sketch the expansion curve. 4. For the same w=1,r=4, what is the ski resort's cost function C(q) ? Graph it. Question 2: Consider a ski resort which uses capital K (mountains, ski lifts, lodges, etc.) and abor L (ski instructors, rental shop employees, kitchen staff, etc.) to accomodate q skiers per day according to the production function q=f(L,K)=L2/3K1/3 1. Write down the problem the ski resort solves to find the levels of K and L that minimize cost. What two equations are used to solve it? 2. Given the ski resort wants to accomodate q skiers, solve this problem to find L(q) and K(q) in terms of wages w and the price of capital r. 3. Suppose w=1,r=4. Find L(q) and K(q) for q=500,q=1000, and q=2000. Plot these point on a graph and then sketch the expansion curve. 4. For the same w=1,r=4, what is the ski resort's cost function C(q) ? Graph it