Question B2 A firm produces a product using inputs of Labour (L) and Capital (K). Its production function is given by: Q = (KL). It will produce 80 units of output and faces prices for labour and capital as follows: w=10, r=15. a. Write down the firms iso-cost line. 14 marks b. What are the equations for the firm's marginal product of labour (MP) and its marginal product of Capital (MPK) 14 marks) c. Determine the optimal ratio of labour and capital which minimizes the firm's costs. 14 marks) d. If the firm wishes to produce 80 units of output, how many units of Labour and Capital should it use in order to minimise cost? 14 marks e. Sketch the firms isocost line and its isoquant curve and clearly label the cost minimizing point and input levels [Put Labour on the horizontal axis and Capital on the vertical axis) 14 marks