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Use the following information to answer questions 12-13. Suppose you are operating a tractor making business according to the production function: Q = KO.5 10.5, MPL = 0.5K0.5 L-0.5, MPK = 0.510.5 K-0.5 have a budget of $100,000. The cost of labor is $10 per hour and you rent the tractor making machines for $1,000 per hour. You 12. If your goal is to maximize the output, how many units of labor and capital will you use? A. K = 100, L = 1,000 B. K = 50, L = 5,000 C. K = 500, L = 5,000 D. K = 100, L = 10,000 13. What is the maximum number of tractors you can afford to make? A. 500 B. 2,500 C. 5,000 D. 25,000 14. Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The marginal cost of the 5th T-shirt is A. 10 B. 60 C. 2 D. 12 15. If a profit-maximizing firm finds that, at its current level of production, MR