Production function: Y(L,K)=min{2L,K}Y(L,K) = \min\{2L, K\}Y(L,K)=min{2L,K}; cost C=wL+rKC = wL + rKC=wL+rK, w,r>0w,r>0w,r>0. Find (L∗,K∗)(L^*, K^*)(L∗,K∗) minimizing cost subject to Y(L,K)≥YˉY(L,K) \geq \bar YY(L,K)≥Yˉ.
L∗=YˉL^* = \bar YL∗=Yˉ and K∗=Yˉ/2K^* = \bar Y/2K∗=Yˉ/2
L∗=YˉL^* = \bar YL∗=Yˉ and K∗=YˉK^* = \bar YK∗=Yˉ
L∗=Yˉ/2L^* = \bar Y/2L∗=Yˉ/2 and K∗=YˉK^* = \bar YK∗=Yˉ
None of the other options is correct
