3)

Question 3 [10 Total Marks} Afirrn has the following production function, I L 0:212:31; The profit maximizing firm faces the problem of producing the optimal amount of output Q, with a budget constraint of $30,000. If PL=$3 and Pk=$, what are the optimal amounts of capital and labour that this profitmaximizing firm should use? (4 marks) What is the optimal amount of output? [4 marks) Illustrate your answer. [2 marks) K