Question: Suppose a firm has a production function f(K, L) = min{K, 3 2 L}. 1. Graph an isoquant. 2. Suppose the values of K and

Suppose a firm has a production function f(K, L) = min{K, 3 2 L}. 1. Graph an isoquant. 2. Suppose the values of K and L are such that K = 3 2 L, what is the marginal product of capital and the marginal product of labor? 3. What is the Marginal Rate of Technical Substitution for the production function provided? For all regions (not just K = 3 2 L). 4. Given the price of capital (r = $2) and price of labor (w = $3), find the quantities of capital and labor that minimize the total cost, if the firm wishes to produce at least 360 units of output. 5. Determine (and provide a supporting argument to) whether the following claim is true or false: "The cost minimizing quantities of capital and labor equate the MRTS to the relative prices of inputs."

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