Q(K,L) = K1/3L1/3 Labour cost: w = $8 Capital rental cost: v = $8 1.Twelve homes must be built. What is its cost-minimizing choice of Capital and

Q(K,L) = K1/3L1/3

Labour cost: w = $8 Capital rental cost: v = $8

1.Twelve homes must be built. What is its cost-minimizing choice of Capital and Labour? (Hint: What is the objective function? What is the constraint?)

2.Write out the cost equation. How much does it cost to build the 12 homes?