# 2.3 — Cost Minimization — Practice

Your firm can use labor $$l$$ and capital $$k$$ to produce output according to the production function:

$q=4lk$

The marginal products are:

\begin{align*} MP_l &=4k \\ MP_k &=4l \\ \end{align*}

Suppose you need to produce 144 units, the price of labor is $10, and the price of capital is$40.

## 1.

What is the least-cost combination of labor and capital that produces 144 units of output?

## 2.

How much does this combination cost?

## 3.

Does this technology experience constant returns, increasing returns, or decreasing returns to scale?