A firm produces output according to a production function Q = F (K, L) = min {4K, 8L}.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $ 60 per hour and the rental rate on capital is $ 20 per hour, what is the cost- minimizing input mix for producing 8 units of output?
c. How does your answer to part b change if the wage rate decreases to $ 20 per hour but the rental rate on capital remains at $ 20 per hour?