For the next seven questions, assume a firm's production function is q = L^0.5 + K^0.5 . The cost of labor is fixed at w = 1 and the cost of capital is fixed at r = 8.

Suppose that capital is fixed at K = 9 in the short-run. Find the short-run cost function. Select one: O a. Cost = q2 + 6q + 81 O b. Cost = q2 - 6q + 72 O c. Cost = q2 - 6q + 81 O d. Cost = q2 - 6q - 81Find the marginal cost function. Select one: O a. MC = 2q + 6 O b. MC =2q - 6 O c. MC = q2 - 6q O d. MC= q - 6Does the firm's production process exhibit diminishing marginal returns in the short-run? Select one: O a. No O b. Yes\fAssume a firm's production function is q = L0-5 + K.5 . The cost of labor is fixed at w = 1 and the cost of capital is fixed at r = 8. Find the long-run average cost function. Select one: O a. LRAC = (8 / 9) O b. LRAC = (8q / 9) O c. LRAC = (9 / 8) O d. LRAC = (9q / 8)What scale properties does this cost function display? Select one: 0 a. diseconomies of scale 0 b. economies of scale 0 C. no economies of scale