3. Comparative Statics Assume there exists some firm producing a good y=f(K,L), with capital K and labor L. The firm can sell y at a price p per unit, and the costs of capital and labor are r and w, respectively. a) Set up the firm's cost minimization problem, and use comparative statics to show that the sign of K/y is indeterminant. b) Set up the firm's profit maximization problem, and use comparative statics to show that the sign of K/p is indeterminant. c) If K/p is positive, then what is the sign of K/y ? Explain your answer. 3. Comparative Statics Assume there exists some firm producing a good y=f(K,L), with capital K and labor L. The firm can sell y at a price p per unit, and the costs of capital and labor are r and w, respectively. a) Set up the firm's cost minimization problem, and use comparative statics to show that the sign of K/y is indeterminant. b) Set up the firm's profit maximization problem, and use comparative statics to show that the sign of K/p is indeterminant. c) If K/p is positive, then what is the sign of K/y ? Explain your