Suppose that a firm has the following production function: y=x11/2x21/4 The price of its output is p=12. The wage of factor 1 is w1=2. The wage of factor 2 is w2=4. It is the short run, and x2 is fixed at x2=1. 1) Solve for MRP1. 2) Solve for the profit maximizing level of x1. 3) How much output will the firm make when it uses the profit maximizing level of x1 ? 4) How much profit will the firm make in the short run? 5) What would the firm's profit maximizing level of x1 be if the price of its output rose to p=16 ? 6) What would the firm's profit maximizing output level (y) be if the price of its output rose to p=16 ? 7) What would the firm's profit maximizing level of x1 be if w1 rose to w1=6 ? (Assume the price o) its output is still p=12.) 8) What would the firm's profit maximizing output level (y) be if w1 rose to w1=6 ? (Assume the price of its output is still p=12.) Suppose that a firm has the following production function: y=x11/2x21/4 The price of its output is p=12. The wage of factor 1 is w1=2. The wage of factor 2 is w2=4. It is the short run, and x2 is fixed at x2=1. 1) Solve for MRP1. 2) Solve for the profit maximizing level of x1. 3) How much output will the firm make when it uses the profit maximizing level of x1 ? 4) How much profit will the firm make in the short run? 5) What would the firm's profit maximizing level of x1 be if the price of its output rose to p=16 ? 6) What would the firm's profit maximizing output level (y) be if the price of its output rose to p=16 ? 7) What would the firm's profit maximizing level of x1 be if w1 rose to w1=6 ? (Assume the price o) its output is still p=12.) 8) What would the firm's profit maximizing output level (y) be if w1 rose to w1=6 ? (Assume the price of its output is still p=12.)