Topic: Managerial Economics, please make answers copy/pastable, instead of an image, and highlight the result--thanks!

3.Suppose that the MPl = 50 and the per unit price of labor is 25. The MPk = 100 and the per unit price of capital is 25.

a.Is this firm minimizing the cost of producing a given level of output? Explain your answer using numbers from above.

b.If the firm is not minimizing the cost of producing the given amount of output, what should this firm do? Draw in a graph to show this.

c.If the above firm increased capital by one unit, how much would the firm need to reduce labor by to remain on the same isoquant? What would happen to total cost? You must justify your answers using numbers from the givens above.

d.Now, suppose that there are two types of laborers capable of producing a particular routine medical procedure: Physicians and Physicians Assistants. Construct some numbers for the MP's of the two types of labor, and the per unit costs of each type of labor that would be consistent with the increased usage of Physician Assistants in place of Physicians when performing these routine procedures (for which the MP of Physicians is not much higher than the MP of Physicians Assistants. Assume the goal of the doctors' office is to minimize the cost of producing a certain level of routine procedures. Explain your answer.

4.A price setting firm is currently producing a level of output at which price is $8, marginal revenue is $5, average variable cost is $6, and marginal cost is $10. What should this firm do to maximize profits? Be sure to keep in mind that this firm is a firm with market power. If you are recommending a change in output in a particular direction you must explain why your chosen direction of output will improve profits. You must detail what will happen both to TR and TC if you alter output, and explain why. I am not looking for a calculation of profits, but you should be able to tell what will be happening to TR and TC using information from above and the relevant concepts.