y bar= K^2 L^.5
a. Solve the contractors problem given a general input-cost-function
b. Calculate the optimal combination of inputs.
c. Calculate the firms cost function (plug K* and L* into objective function and solve for
C(Y)).
d. What would it cost to produce Y bar= 100 ? How much labor and capital are needed assuming that w=r=$1
Now suppose that y bar=? 8K^2 L^.5 due to a technological discovery.
e. Illustrate the change on the production function in general, you don’t need numbers.
f. Solve for the new cost function.
g. Repeat part d.