Question: The long run production function is: Q = BF 2/3 G 1/3 a) Provide the cost-minimization problem as a Lagrangian b) Calculate the cost-minimizing levels

The long run production function is: Q = BF^2/3G^1/3

a) Provide the cost-minimization problem as a Lagrangian

b) Calculate the cost-minimizing levels of F and G for a fixed level of output, Q', as a function of the prices of labor and capital and the coefficient of technological advancement, B

c) Explain the effects to demand for labor and capital as the coefficient for technological advancement increases? Interpret this result.

d) What is the total cost of making 3,000 units when the wage equals $25, the rental rate of capital is $50, and the coefficient of technological advancement is 30?

e) How will total costs alter if the firm produces another unit of output?

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