Compute the cost minimizing capital-labor ratio at the firm

Question

Problem

The Hormsbury Corporation produces yo-yos at its factory. Both its labor and capital markets are competitive. Wages are $12 per hour, and yo-yo-making equipment (a computer controlled plastic extruding machine) rents for $4 per hour. The production function is q = 40K^0.25L^0.75, where q = boxes of yo-yos per week, K = hours of yo-yo equipment used, and L = hours of labor. Therefore, MP_L = 30K^0.25L-^0.25and MP_K = 10K^-0.75L^0.75. Determine the cost minimizing capital-labor ratio at this firm.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.