Consider a company with two stores. Each store has the same production function 2L^0.5K ^0.5 , where K is the number of machines and L is the number of workers. Store 1 has K1=4 machines, whereas Store 2 has K2=1 machine. Stores are not facing different w & r combinations.

a. If the company employs 20 workers then how many should it employ at each shop (L1, L2)?

b. Is it better to employ another worker, or purchase another machine for Store 2? Assume labor, capital, and output are perfectly divisible.