3. Consider the Cobb-Douglas production function Q=f(L,K)= L3/4 K1/4 The wage rate is w, the rental rate of capital is r. Note that k and l are inputs, and

   f is output. Please find:

1. Effect of change in output for the inputs (Hint: normal or inferior inputs).

2. Total cost function C(w,r,q).

3. Average cost and marginal cost functions.

4. Profit maximizing output of the price-taking firm in the short-run (Hint:

   capital is fixed in the short-run)

5. Short-term supply curve of the firm Q(p,w,r,K) and comment on its shape.