Please answer using the graph provided.

Use the graph below for the following three questions: 14 12 10 Units of capital, K A C 102 101 10 20 30 40 50 60 70 80 90 Units of labor, L The graph shows units of labor (labeled _) on the horizontal axis, and units of capital (labeled K) on the vertical axis. A budget line intersects the vertical/capital axis at 10 units, and the horizontal/labor axis at 80 units. Two isoquants are drawn: the first is labeled /01 and is located closer to the origin (which means it is associated with a lower level of output); the second is labeled /02 and is located further away from the origin (which means it is associated with a higher level of output). Isoquant /Q1 intersects the budget line at two points: the first is at a low level of labor and high level of capital and is labeled A; the second is at a high level of labor and low level of capital and is labeled C. Isoquant /Q2 intersects the budget line at a single point of tangency: it is at a medium level of both labor and capital and is labeled B.If the firm changes its labor and capital from point A to point C, Select one: O a. its budget situation will improve since C is a lower point on the graph. O b. its total and marginal cost will increase greater than the budget allows. O c. diminishing returns will set in. O d. it will exhaust its budget but its output will stay the same. Clear my choice Given the prices of labor and capital and our available budget, our firm can produce output represented by Select one: O a. neither /Q1 nor /02 because the prices of L and K are too high. O b. either IQ1 or 102. O c. IQ1 only since it intersects the budget line more than once, which is optimal. O d. IQ2 only since we want the isoquant to actually not intersect the budget line at all. Clear my choiceThe labor/capital combination at point B uses than the labor/capital combination at point C. Select one: O a. less capital and more labor, and produces more output O b. less capital and less labor, and produces an equal amount of output O c. more capital and more labor, and produces less output O d. more capital and less labor, and produces more output Clear my choice