Let Q0 and C0 denote the value of output and the value of total cost, respectively ob- The company has hired you as a consultant. They are not particularly interested, but they are also against increasing costs. Your task is to find the maximum level of output (Q *) that max- can produce with an expenditure ceiling of C0 and to recommend?? the level of unskilled (U) and skilled labor (S) needed to produce Q. Find Q, U, and S.

1. A rm uses skilled (S) and unskilled (U) labour to produce output (Q). The rm's production function is given by f(U, S) = \\/2U + 4.9 Where U denotes unskilled labour and S denotes skilled labour. Assume U 2 0 and S 2 0. Let 11111 = 6 and 1115 = 8 denote the prices of unskilled labour and skilled labour respectively