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# There is a cupcake company. It produces cupcakes using workers and machines. Each week it produces...

1. There is a cupcake company. It produces cupcakes using workers and machines. Each week it produces 500 cupcakes. The production function is Q=2K^0.5L^0.5 where Q is the number of cupcakes, K is the number of machines, L is the number of workers. The wage for workers is \$20 and the cost of machines is \$10.
1. What is the cost function
2. What is the optimal ratio of workers to machines
3. What is the minimum cost of producing 500 cupcakes.
4. How many cupcakes can the company produce if it has a budget of \$1000 per week.

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