Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4l 1/2 + k 1. calculate the mrts 2. do the isoquants of this production function have the diminishing mrts quality? why? 3. if wage is w and the price of capital r, write the tangency condition. 4. suppose w = 1 and r = 0.5 and the firm decides to produce 10 units of output. (a) what are the optimal choices of inputs for this firm? (b) what are the total costs? 5. at the same input prices, the firm chooses now to produce 20 units of output. (a) what are the optimal choices of inputs for this firm? (b) do you find something unusual what compared to the optimal choices for q = 10 in question 4a? (c) what are the total costs?

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.