Suppose that a firm's production function is given by q = kl(mpk = l and mpl = k), where q is the quantity of output, k is units of capital, and l is units of labor. the price per unit of labor and capital are $30 and $20, respectively.(a) how many units of labor and capital should the firm use if it wants to minimize the cost of producing 600 units of output? (b) suppose that the firm experiences a technological change, transforming its production function to q = 1.23kl (mpk = l and mpl = k). what is the minimum cost of producing 600 units of output?

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.