4. The Stern School of Business has hired you to help it with strategic planning. At the start, Stern wants to understand its "production" process. a. What is the output(s) of the Stern School? b. What is the input(s)? c. What are examples of actual or potential input (factor) substitution? d. What forms could technological change take? 5. You are the general manager for Mr. Ollinder ("Oll") MacDonald, who owns three farms that all produce wheat and that use only labor as inputs. He has seven loyal farmhands, who are all equally skilled and who he can assign to any of the three farms. Mr. MacDonald is committed to employing the farmhands and to growing wheat. Mr. MacDonald's friend, Mr. S.L.M. ("Slim") Pickins, is an agronomist who works for the U.S. Department of Agriculture. Mr. Pickins has estimated the following relationships between worker-years at a specific farm and total wheat yields (in thousands of bushels) at that farm: # of workers Farm A Farm B Farm C 80 40 60 140 70 85 180 90 105 JOUAWNE 210 105 120 230 1 15 130 245 120 135 250 123 138 a. Mr. MacDonald wants to maximize the output that he can obtain by allocating the seven workers across the three farms. What allocation of the workers will maximize his output? Explain. (Hint: Calculating the marginal productivity of the workers on each farm can help solve this problem.) b. Suppose instead that Mr. MacDonald can hire all of the farm workers that he wants at a wage of $75,000/year (including benefits, etc.), and suppose also that he expects wheat to sell for $4/bushel. Now he wants to maximize his profits. How many workers should he hire? Explain