Practice1

1. [Producer Theory Music Album] iohnny Greenwood and Thom Yorke are making music during the corona era. They are wondering how many masks (M) and how much of the soda Dr. Pepper (DP) it will require. A Mask costs $0.50 each, and Dr. Pepper costs $2 per liter. a. [12 points] The band's production function is Cobb-Douglas, Q = 4M 0.2501303; The marginal .75 .25 product of masks are M Punk, = E and MP, = 3 l . Using the tangency condition M p and the production constraint to calculate the cost minimizing input demands for masks and Dr. Pepper, the band needs to complete their recordings successfully. b. [3 points] For any given quantity' of records produced, which product do they buy more? Masks or Dr. Peppers? _ c. {9 points] Graph the isoquant and the Mcuwes. Assume Q = 1. Label the cost minimizing hundle. Label the intercepts of the [am Interpret the Dr. Pepper axis intercept from the 1mm