1) (20 minutes) (30 pts) Using the marginal product of labor and capital for the Hong's Office Chair Company, a total variable cost function (using a quadratic cost function with no constant term) is C = 20Q - 0.102. a) (5 pts) Total fixed cost is $25,000 (advertising/promotion cost). Using a quadratic cost function with a constant term, develop a total cost function (C = a + 20Q - 0.102). b) (20 pts) Using cross-section sales data, a demand function is estimated as Q = 3000 - 2P. Find the profit maximizing price and quantity. What is the profit amount? c) (5 pts) Advertising elasticity is 0.2. Assess whether the company should increase its advertising expense by 50% to $37,500 to increase its profit. Find the new profit maximizing price and quantity. What is the new profit amount