i)derive the Total Cost Function, TC(q) ii) draw the Isoquant for the given level of output iii) draw the Isocost associated with the minimum Total Cost of producing the given amount of output, iv) identify the cost minimizing amount of Labor and Capital (L* and K*), v) determine whether the production function exhibits increasing, c

Craig and Javad run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's longrun production function is Q = 4KL, where Q is the number of reams produced, K is the quantity of capital rented, and L is the quantity of labor hired. The weekly cost function for the paper plant is C = 20K + 4L, where C is the total weekly cost. (a) What ratio of capital to labor minimizes Craig and Javad's total costs? (b) How much capital and labor will Craig and Javad need to rent and hire in order to produce 1,000 reams of paper each week? (c) How much will hiring these inputs cost them?

Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K+ L)1/2 f(K, L) = K + L f(K, L) = K1/4+ [1/4 Of(K, L) = KIL None of the above

Consider the following short run cost function: TC = 4Q³ - 24Q² + 16Q + 100 Derive the expressions for marginal cost and average total cost. What can we infer about the range of output over which production shows increasing returns to labor and diminishing returns to labor?