Consider a firm with the production function given by y = L^1/2K^1/2, where y is the output, L is the labour input, and
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Consider a firm with the production function given by y = L^1/2K^1/2, where y is the output, L is the labour input, and
Consider a firm with the production function given byy = L^1/2K^1/2,where y is the output, L is the labour input, and K is the capitalinput.Firm operates in a competitive market where price of outputs andinputs are given. Currently, the price of the labour is $5,the price of the capital is $10.(a) If the firm were to produce y = 100, how many units of thelabour and capital is it goingto hire?(b) Now consider any positive amount of the output (y). Find thecost-minimizing labour andcapital inputs. Note that they must be a function of y.(c) Derive the cost function based on (b).