Question: 1. If a firm faces the total cost function TC = (6 + x)0.5, what is its marginal cost function?
2. A firm operates with the production function q = 0.4K0.5L0.5 and sells its output in a market where it is a monopoly with the demand schedule p = 60 - 2q. If K is fixed at 25 units and the wage rate is £7 per unit of L, derive the MRPL function and work out how much L the firm should employ to maximize profit.