Q1. Find the optimal input bundle, (L ,K ), when r = $, w = $, F(L,K) = L 2/4K 1/4 , and

Q1. Find the optimal input bundle, (L ◦ ,K ◦ ), when r = $α, w = $β, F(L,K) = L 2/4K 1/4 , and producing 500 outputs.

Q2. Total cost is −αy 2 +βy+100, and the price of the output is $10. Find the best output level, y ∗ . 1