Problem 19: The manufacturing cost of a refrigerator was Afs
5000 composed of 30% material, 25% labor and 45% factory
overhead costs. Due to improved method of manufacture the
material cost has decreased by 8% but labor and overhead
costs have increased by 4% and 2% respectively. What will
now be the cost of production of refrigerator?

(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?