W labor rcapital 7. Suppose that a firm's production function is f(L, K) = L + 5K. The cost of labor L is $4 per unit, and the cost of capital K is $20 per unit. What is the long run cost of producing q = 100 units of output? a. $300 $400 C. $800 120 . 100 d. None of the above 8. Suppose that a firm's production function is f (L, K) = 10.5Ko.5. The cost of labor L is $4 per unit and the cost of capital K is $25 per unit. The firm is currently producing q=10 units, but it wants to increase its production to q=20 units. In the short run, K is fixed at 1. What is the difference in the increase in the firm's cost of production between the short run and the long run? a. $200 b. $1000 c. $1200 100 - 200 d. None of the above 9. To increase its production level, the increase in labor demand by a firm is always higher in the short run than in the long run. a. True. b. False 10. It is possible that a firm's cost to increase its production level is strictly lower in the short run than in the long run. (a. True b . False