Epsilon co. can produce a unit of product for the following costs: direct material $ 8.40 direct labor 24.40 overhead 42.00 total costs per unit $ 74.80 an outside supplier offers to provide epsilon with all the units it needs at $66.20 per unit. if epsilon buys from the supplier, the company will still incur 30% of its overhead. epsilon should choose to:

(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?