A glass manufacturer's production function is q= 10L 0.5 K 0.5 (based o Hsieh, 1995). Its marginal product functions are MPL = 5K 0.5 (L 0.5) = 0.5q L a MPK = 5L 0.5 (K 0.5) = 0.5q K Suppose that its wage, w, is $1 per hour and the rental cost of capital, r, is $4.
A. Draw an accurate figure showing how the glass firm minimizes its costs of production.