2. (15 points in total) Consider a firm that produces output based on the production function Y = K0.520.5. Suppose that L = 100. Also suppose that the price of output (P) is 1, the price of the capital good (Px) is 10, the depreciation rate (8) is 0.05, and the interest rate (r) is 0.05. 1) (5 points) Suppose that currently the amount of capital (K) is 36. Calculate the Tobin's q. Should the firm increase or decrease the capital? 2. (15 points in total) Consider a firm that produces output based on the production function Y = K0.520.5. Suppose that L = 100. Also suppose that the price of output (P) is 1, the price of the capital good (Px) is 10, the depreciation rate (8) is 0.05, and the interest rate (r) is 0.05. 1) (5 points) Suppose that currently the amount of capital (K) is 36. Calculate the Tobin's q. Should the firm increase or decrease the capital