申論題

Problems and Short-essay Questions Please answer the following questions IN SEQUENC(E) All questions may be answered in either Chinese or English.
1. Consider the following production funetion Q =, where Q represents the production level, L represents labor and K represents capital. Answer the following questions.

(B) (6 points) Let ω/r be the relative factor price, where ω represents the wage and r the capital return. Suppose that firms in the market observe the relative factor price and take it as given. What is the condition that must be satisfed when the cost is minimized?