i) derive the Total Cost Function, TC(q)

ii) draw the isoquant for the given level of output

iii) draw the isocost associated with the minimum Total Cost of producing the given amount of output

iv) identify the cost minimizing amount of Labor and Capital (L* and K*),

v) label your graph carefully and accurately.

1.

Production Function: q = 3*MIN(L, 3K)

Input prices: w = 6, r = 9

q = 18

TC(q) = _____________________

Draw your graph in this space:

2.

Production Function: q = L^1/2K^1/2

Input prices: w = 9, r = 4

q = 6

TC(q) = _____________________

Draw your graph in this space:

3.

Production Function: q = 2L + 5K

Input prices: w = 2, r = 4

q = 10

TC(q) = _____________________

Draw your graph in this space: