Response to the following question:
Question 1.A firm uses one input, L, to generate output, q, according to the production function q = 16L2. The input price is w and the fixed costs are co > 0.
(i) Show that the firm's cost function is given by C(q) = co +√q /4.
(ii) Show that dql dL increases with L while dC I dq decreases with q.