1}{8 points] Suppose the hourly wage is $10 and the price ofeach unit of capital is $25. The price of output is constant at $50 per unit The production function is f(E;K} = EWK m, a. If the current capital stock is xed at 16 units, how much labor should the rm employ in the short run? How much prot will the firm earn? b. How much labor and capital should the rm employ,r in the long run? How much profit will the rm earn? 2]{? points]George's preferences for consumption and leisure can be represented as U[c, L] = c x L. There are 120 hours in the week available to split between work and leisure. George earns $4 per hour after taxes. He also receives $12G worth of welfare benets each week regardless of how much he works. a] Graph George's budget line. b] What is George's marginal rate of substitution when L = 10:] and he is on his budget line? c] What is George's reservation wage