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Answer any two of the following three questions. Show and explain all calculations. Draw graphs whenever necessary. Provide economic reasoning. Note that you are asked

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Answer any two of the following three questions. Show and explain all calculations. Draw graphs whenever necessary. Provide economic reasoning. Note that you are asked to use Excel only to answer Q 1 (iiic) and Q 2 (iv). Do not use Excel for any other question. When you use Excel solver, take screen shots of relevant worksheets and windows, and explain how you have used solver in that problem. Make sure to write your name at the top of the Excel worksheets. You may use the formula sheet. (iii) Bright Future, Ltd (BF) is a nonprofit foundation providing medical treatment to emotionally distressed children. BF has hired you as a business consultant to design an employment policy that would be consistent with its goal of providing the maximum possible service given its limited financial resources. You have determined that the service (Z) provided by BF is a function of its medical staff input (M) and social worker staff input (S) which is given by: Z=M + 25 + MS - S2 BF's staff budget for the coming year is $900,000. Annual employment costs are $60,000 for each social worker staff member (S) and $120,000 for each medical staff member (M). (a) Using the Lagrangian multiplier approach calculate the optimal (i.e., service maximizing) combination of medical and social worker staff. Determine the optimal amount of service provided by BF. (16 points) (b) Calculate BF's marginal cost. Explain your answer. (5 points) (c) Using Excel-Solver verify your answer to (a)

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