1.Ben's National Tire Shop has the following daily production function:

Q=300K+700L-0.25K^2-0.5L^2

Where L is the number of specialized mechanics and K is the number of car lifts used to repair and rotate tires.The cost of labor is $400/day and the cost of the capital is $100/day.

a.If Ben has a daily budget of $115,000 to spend on labor and capital, what is the output-maximizing combination of workers and lifts he should employ?

b.What is the daily level of production (Q) at the output-maximizing combination of inputs?

c.Draw a graph to show the intuition of the output-maximization process you just used.(Hint: you need 2 lines. Be sure to label which element is Fixed and which you are solving for.) Then explain what you've drawn. (Note: You DON'T NEED to label all numeric values)