A firm produces output according to the production function Q = F(K, L) = 4K + 8L. (LO1, LO2)

1. How much output is produced when K = 2 and L = 3?

2. 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 32 units of output?

3. 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?