The quantity, Q, of a product manufactured by a company is given by

Q = aK^0.6L^0.4,

where a is a positive constant, K is the quantity of capital and L is the quantity of labor used. Capital costs are $20 per unit, labor costs are $10 per unit, and the company wants costs for capital and labor combined to be no higher than $150. Suppose you are asked to consult for the company, and learn that 5 units each of capital and labor are being used.

(a) What do you advise? Should the company use more or less labor? More or less capital? If so, by how much?

(b) Write a one-sentence summary that could be used to sell your advice to the board of directors.