A firm produces at an output level where the marginal products of labor and capital are both twenty five units. Suppose that the rental price of labor and capital are $12.50 and $25 respectively.

1. Is the firm maximizing profit?
2. If the firm is not producing efficiently, how might it do so?
3. If the output produced can be sold at a price of $2, what is the value marginal product of labor?
4. If the output produced can be sold at a price of $2, what is the value marginal product of capital?