(Continued based on Quiz #4) The power plant's fuel cost is 6c per kWh when coal's price is $120 per metric ton. Now we know that the production function of this power plant is given by: Q = min {L/a, K/b, Coal/c} Here, the unit of Q is 1000 kWh or 1 mWh; the unite of coal is metric ton.

(i) What is the rationale behind the above specification of production function?

(ii) Knowing what we obtained in quiz #4, c = ? Why?

(iii) What is the cost function of this power plant? [assume that wage rate is w, capital price is r, and coal's price is $120 per metric ton. ]

this is the quiz quesiton