1 Firms in an industry have a technology summarised by the production function q=f(L,K)=2L 1/4 K 1/4 , where L are units of labour, K are units of
Question

# 1 Firms in an industry have a technology summarised by the production function q=f(L,K)=2L 1/41/4

K , where L are units of labour, K are units of capital, and q are units of output. The factor unit costs are w and r, for labour and capital respectively.

a What is the marginal product of labour when K=16 and L=1? What is the marginal product of labour when K=16 and L=16?

b Derive the total cost of producing q units when w=2 and r=32.

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