7. changing technology Return to the setting of Example 7.3 and Tables 7.7, 7.8 and 7.9.

Now parameterize the direct labor cost by γ ·140 for the first product and γ · 90 for the second product. (So γ = 1 is the original story.)

(a) Determine each product’s marginal cost, again given q1 = 7 and q2 = 9, as γ varies from γ = .25 to γ = 5.

(b) Determine each product’s unit cost, via the impressionism school, as γ varies from γ = .25 to γ = 5.

(c) Determine each product’s unit cost, via the modernism school, as γ varies from γ = .25 to γ = 5.

(d) What happens to the respective errors in estimating marginal cost as γ varies from γ = .25 to γ = 5? Explain.