# Cost function, input price and production function.

A firm uses one input, L, to generate output, q, according to the production function q=16L^2. The input price is w and the fixed costs are c_0 > 0.

i) Show that the firm's cost function is given by C(q)=c_0 + w(square root)q/4.

ii) Show that dq/dL increases with L while dC/Dq decreases with q.

See the attached file for the full problem.

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#### Solution Summary

We solve a couple problems involving a cost function and input price. Response includes Microsoft Word attachment.

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