Bob the builder, a contractor, uses hired labor and equipment to add verandas to his client's homes. The market for verandas is perfectly

competitive. Bob's production function is q = 12L^(1/3)K^(1/3). Suppose the wage rate is $1,000 while the rental cost of equipment is $8,000.

a) Find Bob the builder's total cost function.

a1) Use the cost minimization conditions to find Bob the builder's conditional demand for labor L^(q) and equipment K^(q).

a2) Substitute the conditional demand for labor and equipment and the current wage rate and rental cost of equipment in the

expression TC = wL^(q) + rK^(q).

b) Suppose Bob charges $4,000 for each veranda, how many verandas does he build?

c) How many workers does he hire? How many pieces of equipment does he rent?