3) Consider a rm facing a wage rate of $6 and a rental rate of capital of $16. The company has allocated an outlay of $4.8 million for the initial production run. The production function using available technology can be expressed as: Q = LD.5KD.25, a. Determine the optimal input mix to get the maximum output for the initial outlay of $4.8m 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%. Would the capital labor combination change in the long run? If so, how would it change? How would the total cost compare in the short run and the long run? { 3 points ) c. Should the rm move to different location where w=4, r=20 assuming that relocation is costless? (3 points)