QUESTION 15 Given the same production function, wage rate, and rental rate from the problem above, was it the firm's total cost function for producing q units of output? O TC(q) = 2q O TC(q) = 4q O TC(q) = 6q O TC(q) = 8qQUESTION 13 3 1 3 K; Suppose that a production function is given by F(L ,K) =L 4 K 4 in which case the marginal products will be given by MPL: 7 and MPK: 7, 4L 4 respectively. What is the marginal rate of technical substitution at (L ,K) = (3,18) , and what is the interpretation? 0 1 , which means that in order to maintain the same level of output, then if you increase K by one unit, you must decrease L by two units. 0 2, which means that in orderto maintain the same level of output, then if you decrease L by one unit, you must increase K by two units. 0 1 E, which means that in order to maintain the same level of output, then if you increase K by one unit, you must decrease L by two units. O 2, which means that in order to maintain the same level of output, then if you decrease L by one unit, you must increase K by two units. QUESTION 14 Suppose as in the problem above that that the wage and rental rate are given by w = 16 and r: 3, respectively, and that the production function is given by 1 3 F{K,L) =1. 4 K 4 . What the cost minimizing level of labor and capital necessary to produce 4 units of output? 0 q 0 q (L,K)=(, Sq) 2 O (LaK)=(2q, 211) 0 q (L,K)=(24, E)