Please answer all questions. Question 1 [20 marks] This question refers to the relationship between two optimization problems. Profit Maximization Maximize {II = II (L, K)} where: Total Profit - II = II(L, K) = TR - TC Total Revenue - TR = P x Q, Q = f (L, K) + Production function Total Cost - TC = wxL+rxK The solution to this problem requires MRTS = * Constrained-cost minimization The objective function is Total Cost - TC = wXL+rxK and the constraint is f(L, K) = Q* + Prescribed output level The solution to this problem also requires MRTS = - WThe following statement: "If the firm is maximizing profits, then it is minimizing costs; and vice versa, if the firm is minimizing costs it is maximizing profits." consists of two parts: Part 1: Profit maximization cannot exist without cost minimization, and Part 2: Cost minimization cannot exist without profit maximization. One part is true while the other is false. Your Task Please read carefully Ignore the part that is true. Select the part that is false and explain why is false. To gain marks you have to justify your