Question: Y5 4. [8 POINTS] Suppose a rm's long-run production function is given by Q = AUKE'. Let the price of labor be w and the

4. [8 POINTS] Suppose a rm's long-run production function is given by Q = AUKE'. Let the price of labor be w and the price of capital be r. a) [2 point] Write the condition that must hold at an optimal input combination. That is, nd the MR TS and set it equal to the input price ratio. b) [2 point] Suppose a = b. Graph several isoquants for the production function given in part (a). Put K on the vertical axis and L on the horizontal axis

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