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3. Suppose Geralt is hired by a wealthy noble. Instead of maximizing profit, Geralt is instructed...

3. Suppose Geralt is hired by a wealthy noble. Instead of maximizing profit, Geralt is instructed to produce exactly 4 units of village defense in the least costly way possible. As in the previous problem, the production function is D=R1/4 L1/4 , silver costs 4 orens per unit, and steel costs 2 orens per unit.

a. Write down an equation describing all combinations of inputs that produce exactly 4 units. (3 points)

b. Solve the equation from part (a) for L, so that L is expressed as a function of R. Graph the isoquant represented by this equation. (4 points)

c. Find the marginal products of R and L, and the technical rate of substitution (TRS). (4 points)

d. Write down an equation relating the TRS to the input prices. (3 points)

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