2. The supply curve under perfect competition is always positively sloped.

II. The production function of Firm A is $$q^A = \min\{2L, 2K\}.$$ Firm A is a price taker at the factor market. The unit price of L is 1, and the unit price of K is r > 0. The inverse demand at the product market is p = 1 - Q, where p is the market price and Q the market quantity. 1. (3%) What is the cost function of Firm $A$?