Problem
A cost-minimizing firm's production function is given by Q = LK, where MPL = K and MPK = L. The price of labor services is w and the price of capital services is r. Suppose you know that when w $4 and r $2, the firm's total cost is $160. You are also told that when input prices change such that the wage rate is 8 times the rental rate, the firm adjusts its input combination but leaves total output unchanged. What would the cost-minimizing input combination be after the price changes?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.