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=目录3批注…页Question 1 [20 marks]This question refers to the relationship between two optimization problems.●Profit Maximizationmn(L.K))where:Total Prefit-nn(L K)TR-TCTotal Revenue-TR Px Q0=0+-Preduction functionTotal Cost+T=w×L+rxKThe solution to this problem requiresMRTS●Constrained-cost minimizationThe objective function isTotal Cost+TC=w×L+rxKUNIVERSITYOF WOLLONGONGAUSTRALIAand the constraint isL.K0=Q°-Preseribed output levelThe selution to this problem also requiresMRTSThe following statement:“f the firm is maximizing profits,then it is minimizing costs;and vice yersif the firm is minimizing costs it is maximizing profits.”Part t:Prefit maximization cannot exist without cost minimiration,andPart 2:Cost minimization cannot exist without profit maximization.One part is trve while the other is false.