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. If the manager of Kendall Square. Inc works hard. she can manage to transform the long- run cost function vou derived in (1.3 by

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. If the manager of Kendall Square. Inc works hard. she can manage to transform the long- run cost function vou derived in (1.3 by cutting Kendall Square Inc's variable costs in half. That is, she can halve the part of the long-run cost function unrelated to her xed wage of $54. Suppose that the rest of the market doesn't change: the other firms can only hire mediocre managers who cannot cut the cost functions and so the long-run market price remains fixed at the same level you calculated in Q.5.b [a] What is the new optimal long-run production level for Kendall Square. Inc":l {q*] [b] What are the new long-run prots for Kendall Square, Inc?l {n

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