QUESTION 5 Suppose that a firm's production function is given by F(K,L) = KZL 2 ", in which case the marginal product of capital and labor are given by MPK = and MPL = K N /- NI - respectively. On which 2 K 2L isoquant line does the production level determined by (K, L) = (4, 16) fall, and what is the slope of the isoquant line, or marginal rate of technical substitution, at that point? O It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is NI - It falls on the isoquant line determined by a production level of q = 8, and the slope of the isoquant line at this point is 4. O It falls on the isoquant line determined by a production level of q =8, and the slope of the isoquant line at this point is - 2.QUESTION 7 Suppose the production function is given as that from Question 5. Suppose now that the wage and the rental rate are given by W and /, respectively (not specifying any numbers, just keeping them as symbols). What are the cost minimizing amounts of labor _ and capital K in order to produce a given quantity of output q? Does the amount of labor and capital used increase or decrease as w increases? (L',K)= _ 9, - 9), The amount of labor employed decreases as W increases, while the amount of capital increases. (L',k')= 1 9, 9), The amount of labor employed decreases as w increases, while the amount of capital increases. (Lik )= (1)za, q . The amount of labor employed decreases as W increases, while the amount of capital increases. O (L'. K.) - ()29.(") 29). The The amount of labor employed increases as w increases, while the amount of capital decreases