You produce a product with only two inputs: capital (K) and labour (L). The wage rate and the rental rate of capital are given by w and r.

You produce a product with only two inputs: capital (K) and labour (L).

The wage rate and the rental rate of capital are given by w and r.

(a) If the production function was Q = min(3K; 2L), what are the demand functions for K and L?

(b) If the production function was Q = K1=2L, what are the demand functions for K and L?

(c) Find the cost function C(w; r; Q) for the production function in part (a). Show three properties of this cost function.