Final Exam. ECO10002 (191 points) December 18, 2023 Name: No notes other than a cheat sheet, and no electronic devices, or other aids are allowed. Read all directions carefully and write your answers in the space provided. To receive full credit, you must show all of your work. 1. (10 points) Find the elasticity of the function given by the following formula. Give an inter- pretation of this elasticity. 2. (35 points) Let Q = F(K, [) = 2KELz, is a production function for K 2 0 and L 2 0. (a) (3 points) Find the value of F(4, 16). Interpret the result. (b) (7 points) Find the value of FK (4, 16). What is the economic interpretation of this partial derivative? (c) (5 points) If labor input increases from L = 16 to L = 17 and capital input is fixed at 4 we have: F(4, 17) - F(4, 16) = 2 * 42 * 172 - 2 * 42 * 162 ~ 0.5. What is the economic interpretation of this result? (d) (5 points) Is Q homogeneous in K and L? Show and interpret it. (e) (15 points) Let Q = F(K, L) = 2K2 Li, is a production function for K 2 0 and L 2 0. The firm sells its output at the price of $60 per unit of output; it pays $12 per unit of capital and $6 per unit of labor. Find the firm's profit function and the values of K and L that maximize profit