1)Suppose the wage is $12 and the cost of capital is $3, and we have the following production function: Q=L^0.5K^0.5

^a. Find your cost minimizing level of K and L if Q=10.

b. What is your long run cost in a?

c. Draw a graph that shows the isoquant and isocost that minimizes costs.

d. Suppose the cost of capital increases. How will the level of K and L and the graph change? Draw it.

e. Calculate the marginal rate of technical substitution.

2. Draw a set of isoquants if Q=2K+L. What types of goods are these?