You have a small business that uses machines (K) and labour (L) to produce output (Q). Your production function isQ=L+ 3K. You have to payw= 2for every unit of labour andr= 1for every machine hour. You aren't sure yet what amountQyou will produce.

(a) Use Cost Minimization to find factor demand functionsL(Q)andK(Q).

(b) explainwhat these demand functions represent in this situation

(c) Find the following 3 long-run cost curves:TC(Q),MC(Q), andAC(Q).

(d) Graph the three curves from part (c).

(e) The firm producesQ= 50units.Find:Total Cost, Marginal Cost, Average Cost,L, andK.