A U.S. apparel manufacturer is considering moving its production abroad. Suppose its production function is:

q=L0.70K0.30,

so its

MPL=0.70q/L

and its

MPK=0.30q/K.

In the United States,

w=$7

and

r=$3.

At its Asian plant, the firm will pay a

10%

lower wage and a

10%

higher cost of capital:

w*=$7/1.10

and

r*=$3(1.10).

Part 2What are L and K and what is the cost of producing

q=100

units in both countries?(for all responses, enter a real number rounded to two decimal places)Part 3In the U.S., L is 100100, K is 100100, and the cost of production is

$10001000.

Part 4 In Asia, L is enter your response here.....

Part 4 In Asia, K is enter your response here....

Cost of production in Asia is....