A production function of Su's Company is given below: Q=10K0.8L0.2whereQ=totaloutput,K=unitsofcapitalandL=unitsoflabour. Su's Company currently employs 40 units of capital and 200 units of labour. The per unit price of capital and labour are RM100 and RM10 respectively. a) Based on the current inputs used, find the total cost and calculate the level of output produced by Su's Company. b) Calculate the marginal product of capital and marginal product of labour based on the current inputs used. c) Derive the equation for the expansion path. d) With the current input usage, is Su's Company operating efficiently? e) If the price of capital increases by 100%, will the current input mix be efficient? Explain. f) If capital increases by 5% and labour decreases by 10%, what would be the percentage change in output produced? Jacob, an engineer turns down a job offer at RM30,000 per year to start his own business. He will invest RM50,000 of his own money in a bank account earning an interest of 10% per year. He also plans to use a building he owns that has been rented for RM1,500 per month. He estimated his total revenue for the year would be RM100,000 and the annual expenses would be as follows: Answer the following questions based on the information given. i) Calculate the expected annual explicit cost and implicit cost. (3 marks) ii) Calculate the expected accounting profit and advice Jacob before he begins his own business. (5 marks) QUESTION 2 Amin's father gave Amin a construction company with an asset worth RM400,000. Amin proudly told to some of his fellow directors that his revenues were typically RM35,000 per month, while his operating cost for fuel was RM8,000 and maintenance RM5,000 per month. The estimated depreciation is RM10,000 per month. An office space similar to Amin's office space can be rented for RM15,000 per month. If Amin was working for one of his competing construction company, he would earn RM5,000 per month. a) List the items Amin would consider to compute his explicit cost. (2 marks) b) List the items Amin would consider to compute his implicit cost. (2 marks) c) Compute Amin's monthly economic cost. d) Should Amin continue his business? Support your answer with calculations. (2 marks) (2 marks)