4. (35 points) Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of…

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4. (35 points) Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of…

4. (35 points) Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb- Douglas production function Q = F(L, K) = 10L0.5Kos where L is their number of workers and K is units of capital. The wage rate is $1000, and a unit of capital costs Hannah and Sam $1000 per week. (a) (10 points) Graph the isoquants F(L, K) = 10 and F(L, K) = 20. 9 6 (b) (10 points) What is their least-cost input combination for remodeling 100 square feet a week?
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