Show that the quantity of labor(L) and capital(K) that a firm demand decreases with a factor’s   own factor price (w for labor and r for capital) and increases with the output price (P) when the   production function is a Cobb-Douglas of the form ? = ?????

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A: Cost is minimized when MPL / MPK = w/r MPL = ∂q/∂l = (1/2) / (l1/2) MPK = ∂q/∂k = (1/2) / (k1/2)…

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