Question: Suppose that a firm’s production is q=10L^1/2 K^1/2 the cost of a unit of labor is $20 and the cost of a unit of capitol is $80

a. The firm is currently producing 100 units of output and has determined that the cost minimizing quantities of labor and capital are 20 and 5, respectively graphically illustrate the isocost lines.

b. The firm now wants to increase output to 140inits if capital is fixed in the short run, how much labor will the firm require? Illustrate this graphically and find the firm’s new total cost.

c. Graphically identify the cost minimizing level of capital labor in the long run if the firm want to produce 140 units.