Suppose that a trucking company is required by law to have two drivers in each truck at all times. As a result, in order to make a delivery, the trucking company must use two labor-hours and one truck-hour. Assume that the company is making long-run decisions, so neither capital nor labor are fixed.

A) Write down a production function that describes the number of deliveries the company can make as a function of labor-hours and truck-hours.

B) Placing labor on the horizontal axis and capital on the vertical axis, draw an isoquant representing all the combinations of labor and truck hours that will produce 5 deliveries.

C) Suppose that W = 1 and R = 3. What is the lowest cost of making 5 deliveries?

D) Now suppose that W = 3 and R = 2. What is the lowest cost of making 5 deliveries?

E) For general labor costs W and capital costs R, what is the cheapest way to make q deliveries? Write down a cost function in terms of q, W, and R: C(q,W,R).