microeconomics

12. A rm production is represented by the following Cobb-Douglas function: Q = K 1/ 5 L4/5. The rental rate, r, of capital is given by $240 and the wage rate is $30. a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs? How much capital and labor should be used to produce 400 units? How much is the total cost? What is the short run total cost if output is decreased to 300 units? How would the capital labor choice and total cost would change in the long run? Does this production function exhibit increasing, decreasing, or constant returns to scale? Please answer based on the cost calculations in parts b and d. 99.9