1). Consider the production function

Q= L^0.4 *K^0.1

The price of labor if 8, the price of capital is 2, and the price of output is 160. The firm incurs $80 in fixed costs.

a.) Find the marginal product of labor.

b.) Find the marginal product of capital.

c.) Find MRTS.

d.) find the relationship between optimal level of capital and labor to be used.

e.) find the total cost function

f) find the marginal cost

g) what output will this firm produce?

2) True/False or Uncertain? No points without an explanation

"If the "sticker price" on a t-shirt is $10 and the sales tax is 6%, the actual price paid by consumers will be $10.6. If we raise the tax to 10% both the sticker price and the actual price will rise."