1. Your firm faces a production function that is Q(K,L) = K0.5L0.5. Let w, the hourly wage rate of labor, be = $2. Let v, the hourly rental rate of capital, be = $8. a. Solve for the firm's demand for K and L as a function of Q. b. Based on your answer to (a), if you decide that you want to produce Q=40 units, how many units of K and L will you use to minimize costs? Explain how you found the answer. c. What is the total cost of producing Q = 40 units? d. When you are producing Q = 40 units, what is the marginal product of capital? What is the marginal product of labor? e. Starting at Q = 40, what is the marginal cost of producing another unit of Q? What is the marginal cost of producing a "little bit" more Q (e.g., the calculus answer)?

Your rm faces a production unction that is Q(K,L) = KO'SLO'S. Let w, the hourly wage rate of labor, be = $2. Let v, the hourly rental rate of capital, be = $8. a. Solve for the rm's demand for K and L as a anction of Q. b. Based on your answer to (a), if you decide that you want to produce Q=40 units, how many units of K and L will you use to minimize costs? Explain how you found the answer. 0. What is the total cost of producing Q = 40 units? d. When you are producing Q = 40 units, what is the marginal product of capital? What is the marginal product of labor? e. Starting at Q = 40, what is the marginal cost of producing another unit of Q? What is the marginal cost of producing a \"little bit\" more Q (e. g., the calculus answer)