Question: Suppose that production function realized by Cheese factory Q = 100 ; Cost of capital = $ 5 per unit, wage rate = $4 per

Suppose that production function realized by Cheese factory Q = 100 ; Cost of capital = $ 5 per unit, wage rate = $4 per unit; Price = $ 1 per unit a) Define Cobb - Douglas production function. Compute marginal productivities of two inputs. b) Derive expansion path. Show how to determine the amount of labor and capital that the firm should use in order to minimize cost of producing 1000 units of output. c) How much units of labor and capital are required to maximize output under given total cost outlay $200? What will be maximum profit and output? Group-D

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