Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown in the table below. The firm hires both capital and labor competitively for $5 and $8, respectively. This assignment will be graded out of 6 points with 2 points possible for each question.

1. Suppose the firm is currently using 4 units of capital and 4 units of labor. Is the corresponding output being produced at least cost? How do you know?

2. Consider your answer to the question above.Generally speaking, what would a firm need to do in order to move towards producing at the least cost?

3. What is the least-cost combination of labor and capital?