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(b) (3 Points) Suppose you solve the Lagtangisn, and you find that at Q=64, the resulting labor and capital are (L,K)=(16,64). Explain intuitively what this

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(b) (3 Points) Suppose you solve the Lagtangisn, and you find that at Q=64, the resulting labor and capital are (L,K)=(16,64). Explain intuitively what this cost thet 15 incutied by using 46 unis (6) Ge laber une Guluits ff cepitht (c) (2 Points) What is the lowest total cost that the firm can pay to produce 64 units of output? (d) (6 Points) Use the following blank graph to draw the firm's isoquant for Q=64, the firm's corresponding isocost line at its optimal cost, and label the corresponding optimal levels of labor and cepital. 12. (3 Points) What is the equation that gives us the ratios showing optimality in how firms minimize costs? (Hint: It's a version of the equimarginal principle.) 11. Answer these questions about the same sandwich company from the previous two questions. (a) (6 Points) Set up the firm's cost-minimization Lagrangian equation when Q= 64. (Note: You do NOT need to solve it!) 1=210.520.5grh5(601260.5L0.5) (b) (3 Points) Suppose you solve the Lagtangisn, and you find that at Q=64, the resulting labor and capital are (L,K)=(16,64). Explain intuitively what this cost thet 15 incutied by using 46 unis (6) Ge laber une Guluits ff cepitht (c) (2 Points) What is the lowest total cost that the firm can pay to produce 64 units of output? (d) (6 Points) Use the following blank graph to draw the firm's isoquant for Q=64, the firm's corresponding isocost line at its optimal cost, and label the corresponding optimal levels of labor and cepital. 12. (3 Points) What is the equation that gives us the ratios showing optimality in how firms minimize costs? (Hint: It's a version of the equimarginal principle.) 11. Answer these questions about the same sandwich company from the previous two questions. (a) (6 Points) Set up the firm's cost-minimization Lagrangian equation when Q= 64. (Note: You do NOT need to solve it!) 1=210.520.5grh5(601260.5L0.5)

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