Questitm 1 Consider a rm with production function q = L31! K i. The wage is $40 and the rental rate on capital is $10. 1.1 Suppose that in the short run, the firm employs a xed quantity of capital I? = 400. [f the rm must produce q = 100, how much labor will they employ? What wl be the total cost of production? [3] 1.2 In the long run, when capital is a variable input, how much labor and capital will the rm employ if the firm must produce :3 = 100? What will be the total cost of production? [3]