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Suppose that the hourly wage is $10 and the price of each unit of capital (K) is $400, 000 (rent onexpensive machinery). The price of output is constant at $25

per unit. The production function is givenby: Q= F(L,K) = 200 L2K!/2 Suppose initially that the firm is operating in the short-run such that its capital stock is fixed at 4 units. Find the cost minimizing capitallabour ratio. For each unit of labour usedType your answer hereunits of capitalshould be used to minimize costs.

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