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1. Consider the production function q=K2L0.5   a) Find the cost minimizing quantities of K and L...

1. Consider the production function q=K2L0.5  

a) Find the cost minimizing quantities of K and L for q = 100, r as the price of K and w as the price of L.

b) Find the cost minimizing quantities of K and L for q = 1000, r as the price of K and w as the price of L. Explain whether or not the output expansion [change from part a) to part b)] is labor saving or capital saving.

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