Compute K* and L* for 1000 units of output and minimum cost of producing 1600 units of output.
Suppose a production function is given by F (K, L) = K1/2 L1/2 the price of capital is $10 and the price of labour is $15. Find the equation of the expansion path. Find K* and L* for 1000 units of output. Find the minimum costs of producing 1600 units of output.