3) Consider a firm facing a wage rate of $12 and a rental rate of capital of $32. The company has allocated an outlay of $2.4 million for the initial production run. The production function using available technology can be expressed as: Q=K0.4L0.6, a. Determine the optimal input mix to get the maximum output for the initial outlay of $2.4m as well as that maximum output level. (4 points) b. Explain and illustrate what would happen in the short if output was increased by 25%. How would the capital labor combination and the total cost change in the long run? ( 3 points ) c. Should the firm move to different location where w=15,r=24 assuming that relocation is costless? (3 points) 3) Consider a firm facing a wage rate of $12 and a rental rate of capital of $32. The company has allocated an outlay of $2.4 million for the initial production run. The production function using available technology can be expressed as: Q=K0.4L0.6, a. Determine the optimal input mix to get the maximum output for the initial outlay of $2.4m as well as that maximum output level. (4 points) b. Explain and illustrate what would happen in the short if output was increased by 25%. How would the capital labor combination and the total cost change in the long run? ( 3 points ) c. Should the firm move to different location where w=15,r=24 assuming that relocation is costless? (3 points)