A genealogical firm called Q-L produces its output using the following production function:

(₁,₂)=((x₁-1)) + 2₂

where ₁ denotes the amount of factor 1 and ₂ denotes the amount of factor 2. The market price of factor 1 is $2 and the market price of factor 2 is $10.

(b) Suppose the price of factor 2 has increased to $20. And the price of factor 1 is still $2. To produce =2 units of output with the lowest cost, how much of factor 1 and factor 2 should the firm use? Find this optimal bundle of inputs and calculate the minimal cost.