EXERCISE 11.6 Suppose capital and labour are perfect complements in a one- to-one ratio. That is, suppose that Q = min (L, K). Currently, the wage is w=5 and the rental rate is r = 10. What is the minimum cost and method of produc ng Q = 20 units of output? Suppose the wage rises to w' = 20. If we keep total cost the same, what level of output can now be produced and what method of roduction (input mix) is used?

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