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3.7 Single Product Firm (3 points) A single-product firm intends to produce 30 units of output as cheaply as possible. By using K units of capital and L units of labor, it can produce K+L units. Suppose that the prices of labor are 1 and 20 , respectively. - Form the Lagrangean to solve for a minimum cost - Find the optimal choices of K and L - What is the associated cost? - What is the additional cost of producing 31 units rather than 30 units? 3.7 Single Product Firm (3 points) A single-product firm intends to produce 30 units of output as cheaply as possible. By using K units of capital and L units of labor, it can produce K+L units. Suppose that the prices of labor are 1 and 20 , respectively. - Form the Lagrangean to solve for a minimum cost - Find the optimal choices of K and L - What is the associated cost? - What is the additional cost of producing 31 units rather than 30 units