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Question 9 This question refers to a firm using two inputs (labour and capital) whose production technology is described by the production function Q =

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Question 9 This question refers to a firm using two inputs (labour and capital) whose production technology is described by the production function Q = f(L, K) = 12 + K2 and the input prices w = $2.00 (wage rate) and r = $1.00 (rental cost of capital) are constant. The objective of this firm is to minimize the total cost for each level of production. Suppose that the prescribed output level is Q* = 4, and select the least-cost input combination (L*, K*) from the following possibilities A. (L*, K*) = (1. 7888, 0. 8944) - numbers rounded to the fourth decimal place B. (L*, K*) = (0. 8944, 1. 7888) - numbers rounded to the fourth decimal place C. (L*, K*) = (2,0) D. (L*, K*) = (0,2) E. (L*, K ) does not exist

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