cm L) = Kl/Ll/, Where K and L denote capital and labour respectively. Each unit of capital costs $1 and each unit of labour costs $2. (a) Use the method of Lagrange multiplier to nd the optimal values of K and L that minimize the cost of producing an output of q units. What is the minimum cost? (b) Now suppose that the rm is a monopoly for the good it produces. If the demand function for this good is q=qD(p)=34-p, Where p denotes the price of the good, and if it costs the rm $1 in raw materials for each unit of product it produces, how many units (1 should the rm produce in order to maximize its prot? (Hint: The total cost is given by the costs of capital, labour and raw materials.)