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Q-40K 0.5L0.5 Where: Q is the daily output in thousands of artificial hips, L is labor hours per day, and K is machine hours per day. The firm is currently using 100 hours of labor and 25 machine hours per day. The price of labor is S25 per hour and the rental rate for machine use is S50 per hour. Assume that these are the only inputs and therefore the only costs associated with production. a. What are the firm's total expenditures (i.e. total costs?) b. Is the firm using it resources efficiently? That is, is the firm minimizing total expenditures (i.e. total costs)? If not, would you recommend a change in the firm's input use? Explain Assuming your answer in part (b) is that the firm is not minimizing total costs and coincidently the firm's labor contact is up for renegotiation what can be done to fix the problem without changing it input use? In other words the firm has an opportunity not to change the amount of either input employed but rather renegotiate the wage rate it pays its production workers per hour so that it can remain cost efficient. What is the price the firm should pay for each hour of labor employed if it wants to employ its resources in a cost efficient manner? C.