Question: QUESTION 8 [10m] A firm's production function is given by Q 50KL. Unit capital, K and labour, L costs are $2 and $3, respectively. The

QUESTION 8 [10m] A firm's production function is

QUESTION 8 [10m] A firm's production function is given by Q 50KL. Unit capital, K and labour, L costs are $2 and $3, respectively. The firm is subjected to the production quota of 1200. i. Use Lagrange multipliers to find the minimum total input costs that satisfies the budgetary constraint. (9m) Estimate the increase in optimal input cost when the production quota increases byl. (1m)

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