Question: Suppose that a firm has a production function given by: Q=L^4*K. The wage rate is $4.00 and the rental rate is $2.00. The firm has

Suppose that a firm has a production function given by: Q=L^4*K. The wage rate is $4.00 and the

rental rate is $2.00. The firm has a goal level of output of 200 units which it wants to produce at the

lowest possible total cost.

8. Calculate the Marginal Rate of Technical Substitution (MRTSLK) when the firm has 1 unit of labor

and 1 unit of capital. ___________________ MRTSLK=4

9. Solve the optimization condition for capital and write that function. ____K=0.5L

10. Determine the amount of labor the firm will hire to produce the goal level of output at minimum

cost. __________________ 3.3145 units of labor

answers are given, please show work

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