B. Applications 1. A firm's production function is given by Q = 10L0\""K-6 where L is the quantity of labour employed and K is the quantity of capital employed. The price of labour is 8, and the price of capital is 4. a. If the producer's costs are constrained to 400 find the maximum level of production of the firm. b. If the cost constraint is relaxed and the producer can now spend 800, what effect will this have on the optimal level of production