.- l (5 points) (a) Suppose the production mction is Q = min {K, 2L}. How much output is produced when 4 units of labor and 9 units of capital are employed? Please explain. (b) You are an efciency expert hired by a manufacturing rm that uses K and L as inputs. The rm produces and sells a given output. Kw: $40, 1': $100, MP1,: 20, and WK: 40 Is the rm minimizing costs? It'not, should the rm use more labor and less capital, or less labor and more capital Product Labor 2. (5 points) AB is the original (starting) isocost line. AC is the new (changed) isocost line. Q) is the isoquant. D is the original tangency point (cost minimization point for output Q0).l ' (a) Is price of capital rising or falling or unchanged when the isocost line moves from AB to AC? Please explain. (1)} Please draw an iso-quant and show the new tangeney point between the new isocost line AC and an isoquant that: would indicate the new equilibrium point for this rm. (c) As a result of the price change, does output fall or rise? Please explain