19. Correct. The answer is
false. Solving for the optimal output:
p
= TR - TC = 8*(12.5L-0.125L2) - 2L2
F.O.C: dp/dL = 100 - 2L - 4L = 0 =>
100 - 2L = 4L
Note that the expression on the
left hand side of the equality is MRP, the expression on the right hand side is
the marginal factor cost, and that the marginal factor cost is twice as steep
as the supply curve or marginal cost curve.
Solving L = 16.67.