1. Suppose the production function of a toy factory is: Q=10L^0.6 K^0.4 And that the wage of the worker is 10 riyals per hour (w = 10) and the wage of the capital unit is 20 per hour (r = 20)). After studying the market demand, the company decided to produce 1,000 children's toys (Q = 1,000). Find the amount of labor (L) and capital (K) that the firm has to employ and the costs of production.

2. Suppose that the local demand for dates can be described by the following demand function Qd = 100 - 0.25P and that the supply of dates can be described by the following supply function Qs = -20 + 0.5P and that the price of dates in the global market is 100 riyals per kilo (Pw = 100).

Find the change in consumer surplus, producer surplus, government revenue and welfare if the government imposes a customs tariff of 10 riyals on a kilo of imported dates.