QUESTION 5 Suppose that a firm's production function is given by F(K,L) = KZL 2 ", in which case the marginal product of capital and labor are given by MPK = and MPL = K N /- NI - respectively. On which 2 K 2L isoquant line does the production level determined by (K, L) = (4, 16) fall, and what is the slope of the isoquant line, or marginal rate of technical substitution, at that point? O It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is NI - It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is 4. O It falls on the isoquant line determined by a production level of q =8, and the slope of the isoquant line at this point is - 2.QUESTION 8 Suppose the production function is given as that from Question 5. What is the firm's total cost function, 7C(q)? How do costs change as W and / change? O TC(q) =(2wr)q. Costs increase if either w or / increases. O TC(g) = \\2wr /q. Costs increase if either W or r increases. O TC(q) = - q + q. Costs increase if w increases, but decrease if / increases. W OTC(q) = -q+ q. Costs decrease if W increases, but increase if / increases. r