Questions 1-3 relate to the following information. Consider the same firm with production function F(K,L)=1.52L^0.6K^0.4 that faces a cost of labor of $24 per unit, and cost of capital of $8 per unit. If the firm is constrained to spend $2000 on inputs, how much capital should it use to maximize output? Set up a Lagrangian function where the production function is now the objective function and the cost limit is now the constraint. A. K=50 B. K=40 C. K=80 D. K=100

2. How much labor should it use? A. L=50 B. L=40 C. L=80 D. L=100

3. What is the firm's output level with this combination of capital and labor? A. 40 B. 100 C. 80 D. 50