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A firm produces output according to the following production function: q = A K1/4L1/4 The price of capital is labeled r and the price of

A firm produces output according to the following production function:

q=A K1/4L1/4

The price of capital is labeledrand the price of labor is labeledwand there is a set-up cost labeledF.Solve the cost minimization problem and do the following:

IfA = 8, r = 9, w = 4and the firm wants to produce q = 64, Determine this firm's demand for labor L*.

A. 45 B. 60 C. 90 D. 15

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