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2. Use the same information from question 1 to answer this set of questions. in the long-run, the firm can alter its capital. Suppose that

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2. Use the same information from question 1 to answer this set of questions. in the long-run, the firm can alter its capital. Suppose that you have determined that the profit maximizing output is 194 units. A. What is the optimal combination of capital and labor that you should use to produce that output? This one is really tricky to solve by hand (it's do-able, but you'll need to implement the F.O.l.L. method to factor a quadratic polynomial)... because of this, I want you to use Excel's Solver to figure this out. There's a template that works well on page 172 of the text. You'll want to follow these stipulations: i. Cell F5 should be a function of L (it should reference cell C5) ii. MCL (cell C9) is the price of Labor (given to you in the previous question) iii. MCK (cell F9) is the price of Capital (also given above) iv. Cell I4 is the price that you can sell the output at (given above) v. MPL should be a function of L (it should reference C5) vi. MPK should be a function of K (it should reference F5) vii. Output (cell I3) should be a function of L and K (refers to C5 and F5) viii. Cost (cell IQ) is a function of L, MCL, K, and MC: ix. You'll set the solver up by minimizing cost by changing Labor, subject to output: 194

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