QUESTION 2 Suppose that a firm's production function is given as in Quesion 1. What is the interpretation of the marginal rate of technical substitution at (K,L) = (144, 16) ? O In order to maintain that ouput level, then reducing the amount of labor used by 1 unit would require an additional 3 units of capital. O In order to maintain that ouput level, then reducing the amount of capital used by 1 unit would require an additional 3 units of labor. O In order to maintain that ouput level, then reducing the amount of capital used by 1 unit would require an additional reduction of 3 units of labor. O In order to maintain that ouput level, then reducing the amount of labor used by 1 unit would require an additional reduction of 3 units of capital.QUESTION 1 W / N Suppose that a firm's production function is given by F(K, L) = L 2 2 , in which case the marginal product of capital and labor are given by MPK = and N - w/ the2 K 2 MPL = respectively. On which isoquant line does the production level determined by (K, L) = (144, 16) fall, and what is the slope of the isoquant line, or marginal rate of technical w / | - 2 substitution, at that point? O It falls on the isoquant line determined by a production level of q = 4, and the slope of the isoquant line at this point is 3. O It falls on the isoquant line determined by a production level of q = 4, and the slope of the isoquant line at this point is - 1/3. O It falls on the isoquant line determined by a production level of q = 4, and the slope of the isoquant line at this point is - 3. O It falls on the isoquant line determined by a production level of q = 64, and the slope of the isoquant line at this point is - 3