(Solved): Consider the following production function: x = f(1,k) = Alb kb where x is the output, & is the la ...

Consider the following production function: x = f(1,k) = Alb kb where x is the output, & is the labour input, k is the capital input, and A, bare positive constants. (a) Set up the cost minimization problem and solve for the first order conditions using the Lagrange Method. Let w be the wage rate and the rental rate of capital. (b) Using your answer in (a), find how much labour and capital would the firm use to produce x outputs, given wage rate wand rental rate of capital r? What are these functions called? (c) Using your answer in (b), find the minimum cost it takes to produce x outputs. What is this function called? 1 A ? BI Do not answer here. Scan all your answers to all questions into one pdf file and upload it to the Submission Dropbox.