O S canvas.uw.edu C G Quiz: FINAL ESG Impact Ass D Question 2 30 pts Numerical example of cost minimization (Chp 20) Suppose a chemical producer company has the following production function f(K, L) = 25K0.4 0.6. You can assume factor markets are perfectly competitive and rental prices of capital and labor are r (rent) - 50 and w (wage) - 20. Further suppose that this firm would like to produce 1000 units of output. part-a: What are the underlying economic intuitions of the exponents of capital and labor in the production function? (10 pts) part-b: Solve the cost minimization problem of this firm. What's the lowest possible cost of producing 1000 units of output for this firm? (20 pts) Upload Choose a File D Question 3 25 pts Cost curves (Chapter 21) MacBook Air